The demand curve for a monopolistically competitive firm

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    is horizontal because there are many firms competing for its customers, so if the firm raises its price it will lose all its customers.
    is vertical because it is the only firm offering a unique product.
    slopes upward: The firms product is unique, and as price increases, consumers perceived value and demand for the product increases.s.
    slopes downward because its products are differentiated and so the firm can set the price on its products or services.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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slopes downward because its products are differentiated and so the firm can set the price on its products or services.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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