Question

give an example of a monopoly market that is likely to become monopolistically competitive in the long run. What conditions would (could) bring this about? Will this benefit or hurt the society? Why?

Answer 1

One such example will be in India, Jio Telecom introduced 4G spectrum. Thus, it was the only brand offering that service and it gained a huge market share as a result. Now, other telecom companies have come into play and brought in the 4G technology, the product is differentiated because each one has its own set of plans and thus, it is slowly becoming a monopolistically competitive market.

It will benefit the consumers and the society as competition brings in efficiency in production, thus the price will go down and the overall market will move towards an efficient market which is always good for a society.