The demand curve for a firm operating in a monopolistically competitive industry is:
A)U-shaped.
B)upward sloping.
C)downward sloping.
D)vertical.

Question

Quizplus · Accepted Answer

The demand curve for a firm operating in a monopolistically competitive industry is downward sloping, as the firm has some control over the price it charges due to product differentiation. As the firm increases its price, consumers will switch to similar products offered by competitors, leading to a decrease in quantity demanded.

The Demand Curve for a Firm Operating in a Monopolistically