If market structures are ranked from the one in which firm(s)face the flattest demand curve to the one where they face the steepest,the correct order is

Question

Quizplus · Accepted Answer

In perfect competition, firms are price takers and have no market power, so they face a completely flat demand curve. In monopolistic competition, firms have some degree of market power, but still face relatively elastic demand curves. In a monopoly, the firm is the only supplier in the market, giving them complete market power and a very steep demand curve. Therefore, the correct order from flattest to steepest demand curve is perfect competition, monopolistic competition, and then monopoly, making choice E the best answer.

If Market Structures Are Ranked from the One in Which