Do you expect that an increase in the price of a product generates a larger decrease in quantity demanded for a monopolistically competitive firm than it would for a monopoly? a/ yes; consumers will buy from competitors offering lower priced substitutes b/  no; conditions of imperfect competition means demand is constant c/  no; a monopolistic competitor perceives demand as a price maker d/  yes; but temporarily because price increases only create a short-run decline

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Chapter13: Antitrust And Regulation
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Do you expect that an increase in the price of a product generates a larger decrease in quantity demanded for a monopolistically competitive firm than it would for a monopoly?

a/ yes; consumers will buy from competitors offering lower priced substitutes
b/  no; conditions of imperfect competition means demand is constant
c/  no; a monopolistic competitor perceives demand as a price maker
d/  yes; but temporarily because price increases only create a short-run decline
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