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The demand curve for a monopolistically competitive firm is downward sloping because

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The demand curve for a monopolistically competitive firm is downward sloping because the products produced by different firms are not identical.

<h3>What is monopolistic competition?</h3>

A monopolistically competitive firm is a firm where there are many sellers and buyers of differentiated goods. Sellers set the price for their goods and services.

In a monopolistic competitive market, there are large number of sellers which are producing similar products or close substitute but the products are different enough that the demand curve for each firm is downward sloping.

Hence, the demand curve for a monopolistically competitive firm is downward sloping because the products produced by different firms are not identical.

Learn more about monopolistic competition here : brainly.com/question/20308723

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Assume the MPC is 0.6. If government were to impose $10 billion of new taxes on household income, consumption spending would ini

mihalych1998 [28]

Answer:

$6 billion

Explanation:

Calculation to determine what consumption spending would initially decrease by

Using this formula

Decrease in Consumption spending=MPC * New taxes on household income

Let plug in the formula

Decrease in Consumption spending=0.6*$10 billion