The monopolistic competitor has a __________ elastic demand curve than the monopolist, largely because it faces __________ substitutes for the product it produces and sells.
A)less; more
B)more; fewer
C)more; more
D)less; fewer

Question

Quizplus · Accepted Answer

Monopolistic competitors face more substitutes for their products compared to monopolists, making their demand curve more elastic. Customers can easily switch to other products if prices rise, unlike in a monopoly where alternatives are limited.

The Monopolistic Competitor Has a __________ Elastic Demand Curve Than