From the shape of the monopolistically competitive firm's demand curve,you can imply that:
A)the firm has some degree of market power.
B)the firm sells a homogeneous good.
C)the firm's product has no substitutes.
D)the firm's level of output is efficient.

Question

Quizplus · Accepted Answer

The downward sloping shape of the demand curve implies that the firm has some degree of market power and can influence the price of its product. This is because there are differentiated products in the market, which gives the firm some control over its price.

From the Shape of the Monopolistically Competitive Firm's Demand Curve,you