A Monopolistically Competitive Firm Faces a Relatively Elastic Demand Curve

question 114

Multiple Choice

A monopolistically competitive firm faces a relatively elastic demand curve than a monopolist firm because of the:

• A)presence of a large number of buyers and barriers to entry.
• B)presence of a large number of firms and easy entry.
• C)production a perfectly homogeneous products.
• D)production of unique products and presence of barriers to entry.
• E)production of goods that are perfect complements of each other.

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