Because of product differentiation in a monopolistically competitive market, the demand curve for an individual firm will be

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In a monopolistically competitive market, each firm produces a slightly differentiated product, which means consumers have some degree of choice among the products available. As a result, each firm faces a downward sloping demand curve, which shows the relationship between the price of the firm's product and the quantity of that product consumers are willing to buy at that price. The firm has some bargaining power over the price due to product differentiation, but not to the extent of a monopolist, who faces a vertical demand curve. Likewise, the firm cannot simply produce more and sell it at a lower price to increase revenue, since the market is highly competitive and other firms will also respond to changes in price and output.

Because of Product Differentiation in a Monopolistically Competitive Market, the Demand