Which one of the following statements is true about a monopolistically competitive market?

Question

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In a monopolistically competitive market, firms have some degree of market power which allows them to set prices above marginal cost. This is because each firm offers a product that is differentiated in some way from the products of other firms in the market, leading to a downward-sloping demand curve for each firm's product. This differentiates monopolistic competition from perfect competition, where firms are price takers and face a perfectly elastic demand curve.

Which One of the Following Statements Is True About a Monopolistically