Demand and marginal revenue curves are downward sloping for monopolistically competitive firms because:

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Monopolistically competitive firms have some degree of market power due to product differentiation, which allows them to charge higher prices. However, they still face competition from other firms producing similar products, so they cannot charge any price they want. As a result, they must lower their price to sell more units, which leads to a downward sloping demand curve. Since marginal revenue is the change in revenue from producing one more unit, it also decreases as more units are produced, leading to a downward sloping marginal revenue curve.

Demand and Marginal Revenue Curves Are Downward Sloping for Monopolistically