A firm will attain more monopoly power as demand for its product becomes more elastic.

Question

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A firm attains more monopoly power as demand for its product becomes more inelastic. When demand is inelastic, customers are less responsive to changes in price, allowing the monopoly firm to charge a higher price and maintain a larger market share. If demand is more elastic, customers are more sensitive to price changes, which limits the monopoly firm's ability to raise prices and maintain market share.

A Firm Will Attain More Monopoly Power as Demand for Its