Question

The demand curve of a monopolistically competitive firm

A.is perfectly elastic.
B.is horizontal because the firm must cut its price to sell more.
C.is downwardminus−sloping because it sells an identical product.
D.is downwardminus−sloping because it must cut its price to sell more.

Answer 1

D.is downwardminus−sloping because it must cut its price to sell more.

Step-by-step explanation:

The demand curve of the monopolistic firm is downward sloping because as the price decrease the firm can sell more.