The _____ demand curve for a firm operating in a monopolistically competitive market _____ facing a perfectly competitive firm.

A) downward-sloping;is the same as the demand curve
B) downward-sloping;differs from the horizontal demand curve
C) horizontal;differs from the downward-sloping demand curve
D) horizontal;is the same as the demand curve

Downward-Sloping Demand

A concept in economics that illustrates the inverse relationship between the price of a good and the quantity demanded by consumers.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, and where no single buyer or seller can influence the price of the product.

Horizontal Demand

Describes a demand curve that is perfectly elastic, indicating that even a very small change in price would lead to an infinite change in the quantity demanded, typically theoretical and not found in real-world markets.