The demand for the product of a monopolistically competitive firm is highly elastic when
A) firms collude.
B) there are fewer firms in the industry.
C) there is a lot of product differentiation.
D) there are a lot of close substitutes.
D
Economics
You might also like to view...
A development strategy of import substitution eliminates the gains from specialization and comparative advantage in production among countries
Indicate whether the statement is true or false
Economics
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Economics