The monopolistically competitive seller's demand curve will become more elastic the

A) more significant the barriers to entering the industry.
B) greater the degree of product differentiation.
C) larger the number of competitors.
D) smaller the number of competitors.

Question

Corina Picco · Accepted Answer

Final Answer : C, Explanation :  The demand curve for a monopolistically competitive seller becomes more elastic as the number of competitors increases because consumers have more alternatives, making them more responsive to price changes by any single seller.

The monopolistically competitive seller's demand curve will become more elastic the

A) more significant the barriers to entering the industry.
B) greater the degree of product differentiation.
C) larger the number of competitors.
D) smaller the number of competitors.

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Learning Objectives

Related questions

The monopolistically competitive seller's demand curve will become more elastic theA) more significant the barriers to entering the industry.B) greater the degree of product differentiation.C) larger the number of competitors.D) smaller the number of competitors.

Definitions

Learning Objectives

Learning Objectives

Related questions

The monopolistically competitive seller's demand curve will become more elastic the

A) more significant the barriers to entering the industry.
B) greater the degree of product differentiation.
C) larger the number of competitors.
D) smaller the number of competitors.