Respuesta :
If buyers of a monopolistically competitive product feel the products of different sellers have little differences between them, then the demand for each seller's product is relatively inelastic. Thus, the given statement is false.
What is Monopolistic competition?
When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition develops. A monopolistic competitive industry has minimal entry requirements, and actions made by any one business do not immediately impact those of its rivals.
The price and marketing choices made by the rival firms serve as their points of differentiation. Pricing is frequently a major tactic for these rival businesses since demand is very elastic for their products and services. In order to increase sales, one business may decide to cut prices while forgoing a bigger profit margin.
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