Microeconomics: Principles, Problems, & Policies, 20th Edition

by McConnell, Campbell; Brue, Stanley; Flynn, Sean

Published by McGraw-Hill Education

ISBN 10: 0077660811

ISBN 13: 978-0-07766-081-9

Chapter 13 - Monopolistic Competition and Oligopoly - Discussion Questions - Page 301: 2

Answer

The answer is below.

Work Step by Step

The demand curve is more elastic than a pure monopolist and less elastic than a pure competitor. This makes sense, for more competition increases the influence of outside factors on the demand curve.

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