Question

Would the demand curve for a monopolistic competitor be more or less elastic than the demand curve for a monopolist? Justify your answer. What are the characteristics of a monopolistically competitive market? In what sense is there com- petition and in what sense is there monopoly in this type of market structure? What are three examples of monopolistically competitive markets? True, false or uncertain, and why? "Monopolistic competition is just another form of pure monopoly. True, false or uncertain, and why? "Monopolistic competition is even better than perfect competition." True, false or uncertain, and why? "In the long run, monopolistic competitors produce at their most efficient point."

Answer 1

1) Demand curve for the monopolistic firm will be more elastic because monopolistic firm sells differentiated goods. Or close substitute goods. And we know higher the substitutes available higher will be the elasticities.

whereas in case of monopoly there is a single seller which makes market demand and individual demand curve same.

Thus monopolistic curves will have more elastic demand curve compared to monopoly.