Question:- Which aspect of monopolistic competition gives consumers more choice
Answer
Product differentiation is one of the aspects in a perfect competition market that the market is giving to consumers more choice.
Product differentiation is a process that involves the need to make a product stand out in a flooded market, and become the talk of every one. Despite distinct differences among firms in monopolistic competition, they all share the same mission, which is to differentiate their products via a variety of ways, including branding, packaging, quality, attributes, or advertisement. Thus this differentiation, by definition, leads the customers think in similar but still different way which makes more valuable the products even though the serve the similar purposes.
Therefore, the consumers are lucky enough to have myriads of variety of options to go for in all aspects such as price, quality, and required purpose. In the market, having multiples mall businesses can provide consumers with the ability to consider manymore differentiated products and get the one that answers to the clients ‘ specific needs and preferences, which basically means enhancement of consumer satisfaction and welfare.
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