The price elasticity of a monopolistically competitive firm's demand curve varies:
A. inversely with the number of competitors and the degree of product differentiation.
B. directly with the number of competitors and the degree of product differentiation.
C. directly with the number of competitors but inversely with the degree of product
differentiation.
D. inversely with the number of competitors but directly with the degree of product
differentiation.
Answer: C
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A. diverging. B. similar. C. declining together. D. usually far apart.
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