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Why is the monopolistic competitor’s demand curve more elastic than a pure monopolist’s?

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?

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  • 1 decade ago
    Favorite Answer

    I believe the following explains the effects of the elasticity of the pure monopolist.....You will see from the visual,below, that the elasticity is purely random and is,figuratively, based on the roll of a die.

    http://hanselngretel.com/wp-content/uploads/2011/0...

    Source(s): me
  • 5 years ago

    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.

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