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AR curve under both monopolistic competetion …

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AR curve under both monopolistic competetion and monopoly are downard sloping but under one it is sleeper and other is flatter .why explain

    • Posted by Himanshu Sharma 7 years ago

    CBSE > Class 12 > Economics
    • 2 answers

    Kanika Mastana 7 years ago

    In monopoly market...there is no close substitute...while in monopolistic competition...there r close substitute....hence in monopoly demand is less elastic....and in monopolistic...demand is more elastic...

    1Thank You

    Abhishek Lakhotia 7 years ago

    SimpLy bcoz there is single seller in monopoly so less elasticity......but in monopolistic there is more. sellers so elasticity is high nd we all know higher the curve higher the elasticity

    1Thank You

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