Monopolistic competition is different from monopoly because firms:

A) have some power to set prices.
B) have a downward-sloping demand curve.
C) face some competition.
D) have a downward-sloping marginal revenue curve.

Downward-Sloping Demand

A representation of the inverse relationship between price and quantity demanded, depicted as a descending line on a graph.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for some market power and differentiated competition.

Monopoly

A situation where a single company or group exclusively controls the supply of a particular product or service, limiting competition.