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