Question

0. For a firm in monopolistic competition
(a) perceived demand curve is the real demand curve
(b) proportional demand curve is constructed on the basis of perception
(c) perceived demand curve is much more elastic than the proportional demand curve
(d) perceived demand curve is much more inelastic than the proportional demand curve​

Answer 1

Answer:

For a firm in monopolistic competition perceived demand curve is much more inelastic than the proportional demand curve​

Explanation:

option d is correct

Answer 2

Answer:

For a firm in monopolistic competition (c) perceived demand curve is much more elastic than the proportional demand curve.

Explanation:

• The perceived demand wind shows the increase in volume demand of a product of a establishment, when a establishment cuts down its price handed others keep their prices at the present position.
• When all the merchandisers are charging at same price, establishment faces the demand wind falls in this order.
• Establishment's demand wind under monopolistic competition is more elastic than under proportional demand because of vacuity of close backups under monopolistic competition.
• Therefore, an individual establishment perceives that its demand is more elastic than the commensurable demand wind.

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