Compared to a monopolistic competitor, a monopolist produces a good with __________ substitutes and so has a __________ elastic demand curve.
A)fewer; more
B)fewer; less
C)more; more
D)more; less

Question

Quizplus · Accepted Answer

A monopolist produces a good with fewer substitutes available in the market, which means consumers have fewer alternatives. This leads to a less elastic demand curve because consumers cannot easily switch to another product if the price of the monopolist's product increases.

Compared to a Monopolistic Competitor, a Monopolist Produces a Good