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Question
Which of the following statements is TRUE about the relationship between a firmʹs demand curve under perfect competition and monopoly?
A) Under perfect competition, the demand curve is perfectly elastic; under monopoly, the demand curve has elastic, unit -elastic and inelastic portions.
B) Under monopoly, the demand curve is perfectly elastic; under perfect competition, the demand curve has elastic, unit -elastic and inelastic portions.
C) The demand curves for a monopoly and perfect competition are always inelastic.
D) We can define a demand curve under perfect competition but not under monopoly.
Answer
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