Average revenue curve is more elastic under monopolistic competition than monopoly due to:

CA Foundation · Business Economics · MTP · January 2026
Average revenue curve is more elastic under monopolistic competition than monopoly due to:
(A) A. Low degree of governmental control
(B) B. lack of close Substitute
(C) C. Availability of close Substitute
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Availability of close Substitute

Topics: Price Determination in Different Markets

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