An implication of the downward slope of the demand curve for a monopolistic competitive firm is that

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The downward slope of the demand curve for a monopolistic competitive firm implies that in order to sell more units of output, the firm must lower the price. This means that the marginal revenue derived from selling an additional unit of output will be less than the price of that unit, and will therefore slope downward. However, since the firm has some pricing power due to product differentiation, its marginal revenue curve will lie below the demand curve but above the horizontal axis, resulting in a downward sloping marginal revenue curve that lies below the demand curve.

An Implication of the Downward Slope of the Demand Curve