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The monopolistic firm's demand curve?
a) is perfectly inelastic
b) coincides with its marginal revenue curve
c) is less elastic than a perfectly competitive firm's demand curve
I'm thinking D.
2 Answers
- Anonymous1 decade agoFavorite Answer
I would go for C,because there is no D.The demand curve in this market will have downward slope, compared to a horizontal curve in the perfectly competitive market. Because in the monopolistic market the firm has to reduce price to sell more. His marginal revenue will be lower than demand curve.
A and B are then not true.
Source(s): Anjaree - Anonymous4 years ago
Monopolistic companies are fee setters unlike companies in perfect opposition that are fee takers. In perfect opposition, purchasers can truthfully change companies if the fee is only too extreme. the fee elasticity of call for is for this reason larger for this reason. decrease than a monopoly, the enterprise can tinker with expenditures a splash extra and human beings will might desire to pay.