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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
  • 2 answers

Kanika Mastana 7 years, 3 months 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...

Abhishek Lakhotia 7 years, 3 months 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
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