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The Demand Curve Facing Imelda's Shoe Boutique, a Monopolistically Competitive

Question 5

Multiple Choice

The demand curve facing Imelda's Shoe Boutique, a monopolistically competitive firm,


A) is horizontal because Imelda's is small relative to the market as a whole
B) is horizontal because Imelda's is large relative to the market as a whole
C) slopes downward because Imelda's is small relative to the market as a whole
D) slopes downward because Imelda's sells a differentiated product
E) slopes downward because Imelda's firm is the entire industry

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