If an industry lacks barriers to entry and each of the many firms faces a demand curve with a negative slope, the industry is

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In a monopolistically competitive market, there are many firms, no significant barriers to entry, and each firm faces a downward-sloping demand curve because they sell differentiated products that are not perfect substitutes for one another. This differentiates it from perfect competition, where firms face a perfectly elastic demand curve, and from monopoly and oligopoly, where there are significant barriers to entry.

If an Industry Lacks Barriers to Entry and Each of the Many