Given that firms in monopolistically competitive markets share the attribute of many sellers with firms in perfect competition, it follows that firms in both markets face horizontal demand curves.

Question

Quizplus · Accepted Answer

Firms in monopolistically competitive markets differentiate their products, which means that they face a downward-sloping demand curve rather than a perfectly elastic horizontal demand curve like firms in perfectly competitive markets.

Given That Firms in Monopolistically Competitive Markets Share the Attribute