Home
Class 11
ECONOMICS
Why AR curve under monopolistic competit...

Why AR curve under monopolistic competition is more elastic than AR curve under monopoly ?

Text Solution

Verified by Experts

AR curve under both the markets slope downwards. However, AR curve under monopolistic competition is more elastic as compared to AR curve under monopoly because of presence of close substitutes. AR curve is less elastic in monopoly because of no close substitutes.
Promotional Banner

Topper's Solved these Questions

  • REVENUE

    SANDEEP GARG|Exercise TRUE AND FALSE|23 Videos
  • REVENUE

    SANDEEP GARG|Exercise GUIDELINES TO NCERT QUESTIONS|8 Videos
  • REVENUE

    SANDEEP GARG|Exercise UNSOLVED PRACTICALS|21 Videos
  • PRODUCTION FUNCTION

    SANDEEP GARG|Exercise Practicals on TP, AP and MP|14 Videos
  • SUPPLY

    SANDEEP GARG|Exercise UNSOLVED PARCTICALS|55 Videos

Similar Questions

Explore conceptually related problems

Why is the demand curve under monopolistic competition more elastic as compamred to the demand curve under monopoly

Draw AR curve under perfect competition.