There is inverse relation between price and demand price and demand for the product of a under: (choose the correct alternative)

Monopoly only

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

Monopolistic competition only

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

Both under monopoly and monopolistic competition

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

Perfect competition only

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

Open in App

Solution

The correct option is C Both under monopoly and monopolistic competition
There is inverse relation between price and demand for the product of a firm under both monopoly and monopolistic competition.
This is because firms under both market forms viz. monopoly and monopolistic competition face downward sloping demand curve. Consequently, inverse relationship between demand and price for the product.
Hence, the correct answer is option 'c'.

Suggest Corrections

Similar questions

Q. State whether the following statement are TRUE and FALSE.

1. There is no price discrimination under Monopolistic competition.

2. In a monopoly market, firm and industry are the same.

3. Product differentiation is not possible under perfect competition.

4. Under perfect competition, price is determined by equilibrium of demand and supply.

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

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

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

The demand curves for perfect competition, monopoly and monopolistic competition are respectively D, E and F. Arrange the demand curves in the order of increasing steepness.

Join BYJU'S Learning Program