Why is demand curve less elastic in monopoly as compared to monopolistic competition?
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Heya...
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Demand curve is less elastic is monopoly in compare to the monopolistic firms because...
• There is no close subsitute in the monopoly market, rise in price will not much lead to the change in consumer size of goods as no option is available against goods of monopoly..
• But in monopolistic many firms r there of a single good , so change in price much more effect on the consumer to shift one firm to another..
Thank you
See here for your answer...
================
Demand curve is less elastic is monopoly in compare to the monopolistic firms because...
• There is no close subsitute in the monopoly market, rise in price will not much lead to the change in consumer size of goods as no option is available against goods of monopoly..
• But in monopolistic many firms r there of a single good , so change in price much more effect on the consumer to shift one firm to another..
Thank you
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Demand in a MonopolisticMarket. ... This demand curve will be considerably more elastic than the demand curve that amonopolist faces because the monopolistically competitive firm has less control over the price that it can charge for its output.
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