Because firms produce a differentiated product,each of the firms in a monopolistically competitive market faces a demand curve that is:

Question

Quizplus · Accepted Answer

In monopolistically competitive markets, firms produce differentiated products, meaning each firm has a unique product or brand. This leads to a downward sloping demand curve for each individual firm, as consumers may have varying degrees of loyalty or preference towards a particular product. Therefore, choice C is the correct answer. Choices A, B, and D are incorrect as they do not accurately describe the demand curve individual firms face in a monopolistically competitive market.

Because Firms Produce a Differentiated Product,each of the Firms in a Monopolistically