Compared with monopolistic competition, a firm's demand curve under monopoly is __________.

equally elastic

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less elastic

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more elastic

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infinitely elastic

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Solution

The correct option is B less elastic
Firm's demand curve under monopolistic competition is more elastic than under monopoly because of availability of close substitutes under monopolistic competition.

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Compared with monopolistic competition, a firm's demand curve under monopoly is __________.

The correct option is B less elasticFirm's demand curve under monopolistic competition is more elastic than under monopoly because of availability of close substitutes under monopolistic competition.

The correct option is B less elastic
Firm's demand curve under monopolistic competition is more elastic than under monopoly because of availability of close substitutes under monopolistic competition.