The Less Elastic a Monopolistic Competitor's Long-Run Demand Curve, the

question 110

Multiple Choice

The less elastic a monopolistic competitor's long-run demand curve, the

• A) less its excess capacity.
• B) higher its price relative to that of a pure competitor having the same cost curves.
• C) higher its long-run profits.
• D) lower its average total cost at its equilibrium level of output.