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How does the elasticity of the monopolistic competitor's demand curve compare to that of a pure competitor or a pure monopolist?
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
Why demand curve is horizontally curved?
Horizontal
Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
A perfectly inelastic demand curve will be completely horizontal and means that consumers would any price for a particular good, which is almost impossible. The closer to being horizontal a demand curve is, the more inelastic the demand.
Why The horizontal axis of a demand curve displays?
elasticity
Does monopolistically competitive firms have horizontal marginal cost curve?
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
How does the elasticity of the monopolistic competitor's demand curve compare to that of a pure competitor or a pure monopolist?
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
Why demand curve is horizontally curved?
Horizontal
Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
A perfectly inelastic demand curve will be completely horizontal and means that consumers would any price for a particular good, which is almost impossible. The closer to being horizontal a demand curve is, the more inelastic the demand.
Why The horizontal axis of a demand curve displays?
elasticity
What does the demand curve state?
As price (on the horizontal) increases, demand (on the vertical) will decrease.
Does monopolistically competitive firms have horizontal marginal cost curve?
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
The horizontal sum of all individual demand curves is known as?
The MArket Demand Curve
Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
What is an monopolistic?
Monopolistic competition is a market situation that is different from both perfect competition (PC) and monopoly. The theory of monopolistic competition was first developed by Chamberlin. In monopolistic competition the firms sell differentiated yet highly substitutable products, whereas in PC, the firms engage in production of homogeneous products. This product differentiation gives the firms a bit of monopoly power in pricing and they face slightly downward sloping demand curve as compared to the horizontal demand curve of PC. However, the free entry and exit of firms ensures that these firms have limited monopoly and no super normal profits arise in the long-run.
Is there any relationship between marginal revenue curve and demand curve?
Yes, there is a relationship between the marginal revenue curve and the demand curve. For a monopolistic firm, the marginal revenue curve lies below the demand curve because the firm must lower the price on all units sold to sell additional units, resulting in diminishing marginal revenue. In contrast, for a perfectly competitive firm, the marginal revenue curve is horizontal and coincides with the demand curve, as the firm can sell any quantity at the market price without affecting it. Thus, while the two curves are related, their positions and shapes differ based on the market structure.
Which of the following statements does not describe the demand curve?
Quantities demanded are listed on the horizontal axis
