Figure 16-1

Graph (a)

Graph (b)

Graph (c)

-Refer to Figure 16-1. Which of the graphs illustrates the demand curve most likely faced by a firm in a monopolistically competitive market?
A)Graph (a)
B)Graph (b)
C)Graph (c)
D)Graph (d)

Question

Figure 16-1
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 Graph (a)

Graph (b)

Graph (c)

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-Refer to Figure 16-1. Which of the graphs illustrates the demand curve most likely faced by a firm in a monopolistically competitive market?
A)Graph (a) 
B)Graph (b) 
C)Graph (c) 
D)Graph (d)

Quizplus · Accepted Answer

Graph (b) illustrates a downward-sloping demand curve, which is characteristic of a monopolistically competitive market. This indicates that the firm can influence its price but faces competition, unlike a perfect competitor or a pure monopoly.

Figure 16-1 ​

Figure 16-1