For the monopolistically competitive firm,the demand curve it faces will be flatter:
A) the more differentiated the good is.
B) the less differentiated the good is.
C) the more complementary the good is.
D) the less complementary the good is.

Question

Quizplus · Accepted Answer

In monopolistic competition, the demand curve is flatter when the good is less differentiated because consumers can easily switch to substitutes, making the firm's demand more elastic.

For the Monopolistically Competitive Firm,the Demand Curve It Faces Will