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andrew11 [14]
2 years ago
13

A monopolistically competitive firm faces a __________ demand curve and so it is a price __________. group of answer choices

Business
1 answer:
poizon [28]2 years ago
7 0

A monopolistically competitive firm faces a downward sloping demand curve and so it is a price searcher.

The demand curve for monopolistically competitive firm will be considerably more elastic than the demand curve that a monopolist faces because the monopolistically competitive firm has  a very less control over the price that it can charge for its output.

The firm's control over its price will largely depend on the degree to which its product is differentiated from competing firms' products.

The monopolistically competitive firm will be a price‐searcher rather than a price‐taker because it faces a downward‐sloping demand curve for its product.

To know more about  monopolistically competitive firm here:

brainly.com/question/17241373

#SPJ4

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