Because monopolistically competitive firms produce differentiated products, each firm

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Monopolistically competitive firms have some control over product price because they can differentiate their products and create a perceived difference in quality or features, which allows them to charge a higher price. However, because they still face competition from other firms producing similar products, their demand curve is downward sloping and not perfectly elastic like a monopolist's curve.

Because Monopolistically Competitive Firms Produce Differentiated Products, Each Firm