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The demand curve of a monopolistically competitive firm is _________________ than that of a perfectly competitive...

The demand curve of a monopolistically competitive firm is _________________ than that of a perfectly competitive firm. Select the correct answer below: more elastic and flatter, less elastic and flatter, more elastic and steeper, less elastic and steeper

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Answer #1

If we talk about a perfect competitive market then in this market price is only decided by the market forces that is demand and supply

the change in price is constant

the demand curve of this market is perfect elastic in nature which means change in price is zero

But if we talk about monopolistic market then demand curve is inversely slope in nature

demand curve is more elastic as compare to competitive market because of the inverse relationship relationship between price and quantity demanded

So the answer here is more steeper and more elastic

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