In a monopoly, the monopolist company is the only product in the market place. However, a company competing in a monopolistically competitive market has multiple "similar" competitors that all try and differentiate themselves with specialized or additional services; i.e. the Italian restaurant serving food only from northern Italy. These companies may be a monopoly in the sense that their niche product is one-of-a-kind, but there are substitute products that can replace them if their price becomes too high to the consumer. As a result, the firm in a monopolistically competitive has a more elastic demand than a true monopolist.
YES
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
yes
Produce in the elastic range of the demand curve
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
YES
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
yes
Yes; indeed, a monopolist ALWAYS operates on the elastic portion.Here's a simple reason why: if demand were inelastic, raising price would yield more revenue, which would yield more profit.
Produce in the elastic range of the demand curve
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
perfectly elastic demand function.
B. Perfectly elastic This is because it is operating in a perfect competitive market
yes the demand curve is perfectly inelastic and horizontal
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero Economics profits.
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero economics profits.
elastic