Why is the demand curve for a firm in monopolistic competition downward sloping?
Answer to relevant QuestionsHow are fewness of firms and mutual interdependence related? What does the statement "in monopoly, the firm is the industry" mean? Why are demand curves for perfectly competitive firms horizontal and for firms in monopolistic competition downward sloping? Perfectly competitive firms in long-run equilibrium produce at the lowest point on their ATC curve. They produce at maximum efficiency. Yet, producing at an output that generates maximum efficiency isn't their intent. Why, ...What are concentration ratios?
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