Firm's demand curve under monopolistic competition is more elastic than under monopoly.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

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

Suggest Corrections

Similar questions

Why is the demand curve of a firm under monopolistic competition more elastic than under monopoly? Explain.

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

Q. How is the demand curve under monopolistic competition different from demand curve of a firm under perfect competition?

Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.

Compare demand curves facing a seller under conditions of perfect competition, monopolistic competition and monopoly, clearly reflecting the difference in their elasticities. Draw 3 curves in a single diagram.

Join BYJU'S Learning Program

Firm's demand curve under monopolistic competition is more elastic than under monopoly.

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