A firm in a monopolistically competitive market operates on the:

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In a monopolistically competitive market, firms have some control over the price of their product, but face competition from many other firms. This means that they cannot charge a price significantly above their average total cost without losing customers to their competitors. Therefore, firms in this market tend to operate on the declining portion of their average total cost curve, where they can produce at a lower cost and still charge a price that is competitive with other firms. Operating on the rising portion of the average total cost curve would result in higher costs and lower profits, making it an unattractive strategy.

A Firm in a Monopolistically Competitive Market Operates on The