Because the products of firms in a monopolistically competitive market are not homogeneous, the

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In monopolistically competitive markets, firms produce differentiated products which means that they have some degree of market power. As a result of this, the demand curve for the firm's product is downward sloping because they can charge slightly higher prices than their competitors. However, the demand curve for the industry may still be downward sloping as consumers may see the products of different firms as substitutes for each other. The other choices are incorrect as they do not accurately describe the demand curve in this market structure.

Because the Products of Firms in a Monopolistically Competitive Market