The demand curves facing a seller under conditions of pertect competit – InterviewSolution

InterviewSolution

1.	The demand curves facing a seller under conditions of pertect competition, monopolistic compettion and monopoly difer in their price elasticities of demand. Draw demand curves of all the three market situations in a single diagram.
Answer» Perfect competition has a perfscty elastic demand curve (DD) parallel to the X-axis Monopolistic competition has a highly elastic demand curve `(D_(1),D_(1)). Manopoly has a less elastic demand curve `(D_(2)D_(2))`

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