Monopolistically competitive firms have monopoly power because they:

A) face downward sloping demand curves.
B) are great in number.
C) have freedom of entry.
D) are free to advertise.

Downward Sloping Demand

A characteristic of most demand curves, indicating that as the price of a good decreases, the quantity demanded increases.

Monopoly Power

The ability of a single supplier to control the market prices and output of a good or service, due to lack of competition.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.