Why is the monopolistic competitor’s demand curve more elastic than a pure monopolist’s, but less elastic than a pure competitor’s? What factors determine the price elasticity of demand for a monopolistic competitor?
Anonymous
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what the heck is the difference between a "monopolistic competitor" and a "pure monopolist" ???
- a monopoly is a monopoly
?
Monopolistic companies are cost setters unlike companies in suitable opposition that are cost takers. In suitable opposition, purchasers can extremely swap companies if the cost is purely too severe. the cost elasticity of call for is subsequently bigger consequently. below a monopoly, the organization can tinker with expenses slightly greater and human beings will might desire to pay.