Why demand curve face monopolistically competition
Why is demand curve facing a monopolistically competitive firm probable to be very elastic?
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Answer: This is because the products generated by monopolistically competitive firms are close substitutes to one other. When products are close substitutes to one other the elasticity of demand is high, that is what makes the firm’s demand curve (that is, under monopolistic competition) much elastic.
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A firm generating where MC = SRAC = LRAC operates at the minimum point of its: (w) short-run and long-run average total cost curves. (x) long-run total cost curve. (y) total physical product of labor curve. (z) maximum profit curve. Discover Q & A Leading Solution Library Avail More Than 1446072 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1953519 Asked 3,689 Active Tutors 1446072 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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