The demand curve for each individual seller's product in a monopolistically competitive market is a horizontal line at the going market price.

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, each firm faces a downward-sloping demand curve because, although many firms compete for the same customers, each firm offers a slightly different product, and thus has some degree of market power to set its own prices.

The Demand Curve for Each Individual Seller's Product in a Monopolistically