The demand curve of a monopolistically competitive producer is:

A) less elastic than that of either a pure monopolist or a pure competitor.
B) less elastic than that of a pure monopolist,but more elastic than that of a pure competitor.
C) more elastic than that of a pure monopolist,but less elastic than that of a pure competitor.
D) more elastic than that of either a pure monopolist or a pure competitor.

A monopolistically competitive producer faces competition from other producers selling similar but not identical products. This means that consumers can switch to a close substitute if the price goes up, making the monopolistically competitive producer's demand curve more elastic than that of a pure monopolist. However, there is still some degree of product differentiation, which gives the monopolistically competitive producer some market power and makes their demand curve less elastic than that of a pure competitor. Therefore, the demand curve of a monopolistically competitive producer is more elastic than a pure monopolist but less elastic than a pure competitor.