For a monopolistically competitive firm,the demand curve
A) is a horizontal line.
B) has a positive slope.
C) is vertical.
D) has a negative slope.
E) is the same as the marginal revenue curve.

Question

Quizplus · Accepted Answer

The demand curve for a monopolistically competitive firm has a negative slope due to the law of diminishing marginal utility. As the price of the good decreases, consumers are willing to buy more of the good, resulting in a higher quantity demanded.

For a Monopolistically Competitive Firm,the Demand Curve