Demand curve for monopoly and monopolistic competition
monopoly; perfect competition. C. The typical slope of the demand curve as perceived by a monopolistic competitor will. A. be steeper than the demand curve perceived by a monopolist. B. reflect that firm's ability raise its price without losing all of its customers. C.Sep 28, 2017 Many people have trouble in understanding the difference between monopoly and monopolistic competition. Monopoly refers to a market structure where there is a single seller dominates the whole market by selling his unique product. On the other hand monopolistic competition refers to the competitive market, wherein there are few buyers and sellers in the market who offer near substitutes demand curve for monopoly and monopolistic competition
Demand in a Monopolistic Market Because the monopolistically competitive firm's product is differentiated from other products, the firm will face its own downwardsloping market demand curve. This demand curve will be considerably more elastic than the demand curve that a monopolist faces because the monopolistically competitive firm has less control over the price that it can charge for its
E. monopoly and monopolistic competition A monopolistic competitor's demand curve is: Demand for monopolistically competitive firms is: A. less elastic than demand for firms in pure monopolies due to competitors producing substitutable goods. Firms in the monopolistic competition face downwardsloping demand curves but the demand is not perfectly elastic. A monopoly at the other extreme is characterized by onlydemand curve for monopoly and monopolistic competition Under monopolistic competition also, the revenue curves are different but in this case, the revenue curves are more elastic. It means small fall in price, will lead to big increase in demand. Fig. 14 represents AR and MR under monopolistic competition.