Question

)Monopolistically competitive firms have monopoly power because they:4)A)are great in number.B)face downward sloping demand curves.C)have freedom of entry.D)are free to advertise.

Answer 1

.B)face downward sloping demand curves

Step-by-step explanation:

A monpolistically competitive market is when there are many firms selling differentiated products. A monpolistically competitive firm faces a downward sloping demand curve. Monopolistic firms engage in non orice competition such as advertising.

A monopoly is when there is only one firm operating in the industry. There are high barriers to entry of firms. The demand curve is downward sloping.

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