Question: Please help to answer the following multiple choice question and explain. Thanks. Question: Would you expect the demand for a monopolistically competitive firm's product to

Please help to answer the following multiple choice question and explain. Thanks.

Question:

Would you expect the demand for a monopolistically competitive firm's product to be more or less elastic than for a monopolist's product? Why?

Choices:

A) Only more elastic in the long run when firms' products become similar.

B) More elastic as there are close substitutes in the market

C) Less elastic, as the firms product has no perfect substitutes

D) More elastic, as the products are differentiated in the short run.

Regards,

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