For oligopolistic industries,demand is more elastic than the demand facing monopolistically competitive industries.

Question

Quizplus · Accepted Answer

In oligopolistic industries, there are only a few firms that dominate the market, so they have more market power to influence the price and quantity of output. This means that the demand for their products is less elastic than in monopolistically competitive industries, where there are many small firms that produce differentiated products and have less market power. Therefore, the statement is false.

For Oligopolistic Industries,demand Is More Elastic Than the Demand Facing