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Figure: Profit Maximization in Monopolistic Competition
-(Figure: Profit Maximization in Monopolistic Competition)Use Figure: Profit Maximization in Monopolistic Competition.In panel (a)of the figure,if the firm raises its price above P,it will _____ customers.

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Use the following to answer questions :
Figure: Profit Maximization in Monopolistic Competition 
-(Figure: Profit Maximization in Monopolistic Competition)Use Figure: Profit Maximization in Monopolistic Competition.In panel (a)of the figure,if the firm raises its price above P,it will _____ customers.

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In monopolistic competition, firms have some market power due to product differentiation, so raising prices slightly above P will result in losing some, but not all, customers.

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