The demand curve for a monopolistically competitive firm is

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In monopolistic competition, there are many firms producing similar but not identical products, giving consumers some degree of choice. This makes the demand curve relatively elastic as consumers can easily switch to a competitor's product if the price is too high. However, it is not as elastic as a perfectly competitive firm because the products are not identical and there may be some loyalty or preference for a particular brand. The demand curve is more elastic than for a monopoly firm because there are close substitutes available in the market.

The Demand Curve for a Monopolistically Competitive Firm Is