why-does-a-firm-in-monopolistic-competition-face-a-downward-sloping-demand-curve

Question

Why does a firm in monopolistic competition face a downward sloping demand curve?

Accepted Answer

Because it has some control over its prices due to product differentiation.

Answer

Because it is a price taker.

Answer

Because it operates in a perfectly competitive market.

Answer

Because it can sell unlimited quantities at any price.