Benefits and Costs of Competitive Market Structures
Competitive market structures, such as perfect competition and monopolistic competition, have the benefit that efficiency is high. Sellers aim at providing high quality goods and outdoing one another to attract and retain consumers. This is beneficial to the consumers who enjoy high quality of goods. Furthermore, the prices of goods are affordable as sellers aim setting prices that will attract more clients. Consumers experience a higher purchasing power with the same level of income. Consumers enjoy a wide range of goods courtesy of the sellers’ efforts in branding. The high quality and wide variety of good at affordable prices ...