What is the shape of demand curve in monopolistic competition?The firm under monopolistic competition has downward sloping demand curve. It means a larger amount of the commodity can be sold by merely lowering its prices.
What happens when a monopolistically competitive firm raises prices?However, when a monopolistic competitor raises its price, consumers can choose to buy a similar product from another firm. If a monopolistic competitor raises its price, it will not lose as many customers as would a perfectly competitive firm, but it will lose more customers than a monopoly would.
When the demand curve for a firm in monopolistic competition shifts the marginal revenue curve quizlet?When the demand curve for a firm in monopolistic competition shifts, the marginal revenue curve: must shift too. economic profits = 0.
Which industry is an example of monopolistic competition?Restaurants, hair salons, household items, and clothing are examples of industries with monopolistic competition. Items like dish soap or hamburgers are sold, marketed, and priced by many competing companies.
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