In a monopolistically competitive industry, the firms' demand curves will equal:

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In monopolistically competitive industries, firms have downward-sloping demand curves, which means that as they increase their quantity sold, their average revenue (or price) decreases. Therefore, the firms' demand curves will equal their average revenue curves. Marginal cost will intersect the marginal revenue curve at the profit-maximizing quantity, but this does not necessarily coincide with the demand curve. Total revenue curve is simply the product of price and quantity, and while it is related to demand, it is not the same thing.

In a Monopolistically Competitive Industry, the Firms' Demand Curves Will