In a monopolistically competitive market,the retailer will be confronted with a negatively sloping demand curve.

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, there are many firms producing differentiated products, which means that each firm has a certain degree of market power. As a result, the demand curve faced by each firm is negatively sloping, indicating that as prices increase, the quantity demanded will decrease. Therefore, the statement is true.

In a Monopolistically Competitive Market,the Retailer Will Be Confronted with a Negatively