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Describes how the product differentiation of monopolistically competitive firms may benefit consumers?

User Nicholas K
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Final answer:

Monopolistically competitive industries benefit consumers through product differentiation, providing them with more options and improved offerings.

Step-by-step explanation:

Monopolistically competitive industries offer benefits to consumers through product differentiation. Product differentiation is based on variety and innovation, providing consumers with a wide range of choices. This allows firms to attract customers through methods like friendlier service, free delivery, guarantees of quality, variations on existing products, and a better shopping experience. The competition among firms to differentiate their products ultimately benefits consumers by providing them with more options and improved offerings.

User MathBunny
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