Compared with a monopolist, the demand curve faced by a monopolistically competitive firm is

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The demand curve faced by a monopolistically competitive firm is more elastic than that faced by a monopolist. This is because a monopolistically competitive firm faces competition from many close substitutes, giving consumers more options to choose from. As a result, a monopolistically competitive firm cannot raise its price without losing a significant number of customers to its competitors. In contrast, a monopolist has a relatively inelastic demand curve because there are no close substitutes for its product, allowing it to raise its price without losing many customers.

Compared with a Monopolist, the Demand Curve Faced by a Monopolistically