Topic 4.4: 3) Solution March 16 2014

Topic 4.4: 3) Discuss whether consumers would always want to be supplied by firms in perfect competition rather than by a monopoly. 

Solution: 
Introduction: There are large  no. of seller in the perfectly competitive competitive market who sells their product at same prices. Products are generally homogenous by nature and give undiscriminated access of product to all consumer. Monopoly represents a single firm producing or controlling the market to set the price by manipulating the production level in the market.

Reasons for which consumers favours perfect market: 

• comparatively lower prices
• prices remain same at all places
• consumer free to buy as much at same prices
• well informed consumer about the firms and its products
• wide choices to selecting selecting products out of large no. of producer firms
• firms are more responsive to consumer's grievances
• efficient firms as market is highly competitive

Reasons for which consumer not favours perfect market:   

• more of theoretical concept where such market really does not exist
• duplication of products for consumers
• consumer have to satisfy with same type of product
• no individuality for  consumers as all have access to same type of product
• consumer satisfaction is low as all are using same product
• lacks access to innovative products 

(Can use other logical explanations ) 

Conclusion: 

Conclusion must be one sided representing the strong argument given. List like approach is not appreciated by the Cambridge so you should write complete sentences for gaining good score. Here in this case we can say that consumer will not favour perfect market as this only a theoretical market, provides substandard products and forces them to buy same type of product without any individual choices.