Each firm in a monopolistically competitive industry faces a downward-sloping demand curve because there are many other sellers in the market. the firm's product is slightly different from those offered by other firms in the market. there are very few other sellers in the market. the firm faces the threat of entry into the market by new firms.
Each firm in a monopolistically competitive industry faces a downward-sloping demand curve because there are many other sellers in the market. the firm's product is slightly different from those offered by other firms in the market. there are very few other sellers in the market. the firm faces the threat of entry into the market by new firms.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 2SQ
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Transcribed Image Text:Each firm in a monopolistically competitive industry faces a downward-sloping demand curve because
there are many other sellers in the market.
the firm's product is slightly different from those offered by other firms in the market.
there are very few other sellers in the market.
the firm faces the threat of entry into the market by new firms.
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