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    Question

    Which of the following statements is

    correct?
    A When compared to the monopolistic competition, the demand curve of a firm under monopoly is infinitely elastic Correct Answer Incorrect Answer
    B When compared to the monopolistic competition, the demand curve of a firm under monopoly is more elastic Correct Answer Incorrect Answer
    C When compared to the monopolistic competition, the demand curve of a firm under monopoly is equally elastic Correct Answer Incorrect Answer
    D When compared to the monopolistic competition, the demand curve of a firm under monopoly is less elastic Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    When compared to the monopolistic competition, the demand curve of a firm under monopoly is less elastic because there are no close substitutes

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