With monopolistic competition,firms have demand curves that are ________ the lowest possible cost.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms face downward-sloping demand curves, meaning they can set prices above marginal cost. This allows them to operate at a level of output and pricing that is above the lowest possible cost, unlike in perfect competition where firms produce at the minimum point of their average total cost curve.

With Monopolistic Competition,firms Have Demand Curves That Are ________ the Lowest