The less elastic a monopolistic competitor's long-run demand curve, the

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A less elastic long-run demand curve means that the monopolistic competitor has more market power and can charge a higher price relative to a pure competitor with the same cost curves. This is because consumers have fewer substitutes for the monopolistic competitor's product. Therefore, the monopolistic competitor can earn higher profits in the long run. Excess capacity, average total cost, and equilibrium level of output are not directly related to the elasticity of demand.

The Less Elastic a Monopolistic Competitor's Long-Run Demand Curve, the