The monopolistically competitive firm differs from monopoly in that its
A)demand curve is flatter.
B)demand curve slopes downward.
C)MR curve lies below its demand curve.
D)profit is maximized where MR = MC.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms face a more elastic (flatter) demand curve due to the presence of close substitutes, unlike a monopoly which faces a steeper demand curve.

The Monopolistically Competitive Firm Differs from Monopoly in That Its