The marginal revenue curve for a monopolistically competitive firm, when compared to the marginal revenue curve for a perfectly competitive firm, is

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In a monopolistically competitive market, firms have some degree of market power, allowing them to influence prices. This results in a downward-sloping demand curve for their products. Consequently, the marginal revenue curve for such a firm is steeper and lies below the demand curve, unlike in perfect competition, where firms are price takers, leading to a horizontal demand curve and a marginal revenue curve that is identical to the demand curve.

The Marginal Revenue Curve for a Monopolistically Competitive Firm, When