Under monopolistic competition, an increase in the number of firms producing close substitutes will make the demand curve ofeach firm

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Question:

Under monopolistic competition, an increase in the number of firms producing close substitutes will make the demand curve ofeach firm

A.

Inelastic

B.

Elastic

C.

Downward sloping

D.

Perfectly inelastic

Answer» b. Elastic

Note: The above multiple-choice question is for all general and Competitive Exams in India.