
Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive firm is
A) more elastic because there are many close substitutes for the product of a monopolistically competitive firm.
B) less elastic because monopolistically competitive firms produce similar, but not identical, products.
C) just as elastic because there are many sellers in both markets.
D) more elastic because in the long run, the demand curve is tangent to the firm's average total cost curve.
Correct Answer:
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Q190: If a firm has excess capacity, then
A)the
Q191: Figure 13-17 Q192: Figure 13-18 Q193: Which of the following statements is true Q194: In both monopolistically competitive and perfectly competitive Q196: In the long run, firms in both Q197: Consumers benefit from monopolistic competition by Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)being able