Asked by Shelby Wilcox on May 11, 2024
Verified
The demand curve of a monopolistically competitive producer is less elastic than that of a purely competitive producer.
Monopolistically Competitive
A market structure characterized by many firms selling similar but not identical products, with some control over prices.
Purely Competitive
A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit in the market.
- Build awareness about the various categories of market formations, like monopoly, oligopoly, monopolistic competition, and perfect competition.
- Evaluate the long-term economic outcomes for firms in different market structures.
Verified Answer
VG
Varniraj GajeraMay 17, 2024
Final Answer :
True
Explanation :
In monopolistic competition, producers have some degree of market power and are able to differentiate their products, which makes their demand curve less elastic compared to a perfectly competitive producer who faces a horizontal demand curve.
Learning Objectives
- Build awareness about the various categories of market formations, like monopoly, oligopoly, monopolistic competition, and perfect competition.
- Evaluate the long-term economic outcomes for firms in different market structures.
Related questions
Two Industries That Have the Same Four-Firm Concentration Ratio Can ...
Generally Speaking,oligopolistic Industries Producing Raw Materials and Semifinished Goods Usually ...
(Last Word)In the Internet Search Market ...
The Economic Profits Earned by Monopolistically Competitive Sellers Are Zero ...
The Excess Capacity Problem Associated with Monopolistic Competition Implies That ...