Q7. It can be noted that the demand curve that monopolistically competitive firm is more elastic as compared to the one faced by a monopoly seller. Explain why this is true. (Hint: Think carefully about the characteristics of each market) If a monopolistically competitive firm makes super-normal profits in the short-run, what will happen to the demand curve as they move towards the long-run?
Q7. It can be noted that the demand curve that monopolistically competitive firm is more elastic as compared to the one faced by a monopoly seller. Explain why this is true. (Hint: Think carefully about the characteristics of each market) If a monopolistically competitive firm makes super-normal profits in the short-run, what will happen to the demand curve as they move towards the long-run?
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 6P
Related questions
Question
![Q7. It can be noted that the demand curve that monopolistically competitive firm is more
elastic as compared to the one faced by a monopoly seller. Explain why this is true. (Hint:
Think carefully about the characteristics of each market) If a monopolistically competitive
firm makes super-normal profits in the short-run, what will happen to the demand curve
as they move towards the long-run?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad98f011-a85c-4ae9-bbc2-9bf80e68ec16%2F9c97ec14-650c-452f-92a4-357681512e0c%2Fzbj2s4b_processed.png&w=3840&q=75)
Transcribed Image Text:Q7. It can be noted that the demand curve that monopolistically competitive firm is more
elastic as compared to the one faced by a monopoly seller. Explain why this is true. (Hint:
Think carefully about the characteristics of each market) If a monopolistically competitive
firm makes super-normal profits in the short-run, what will happen to the demand curve
as they move towards the long-run?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics, 7th Edition (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781285165875/9781285165875_smallCoverImage.gif)
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics, 7th Edition (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781285165875/9781285165875_smallCoverImage.gif)
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971493/9781305971493_smallCoverImage.gif)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![ECON MICRO](https://www.bartleby.com/isbn_cover_images/9781337000536/9781337000536_smallCoverImage.gif)