Answer:
C. have market power because they face downward-sloping demand curves
Explanation:
The monopolistic competition involves many firms competing against each other, but selling products that are distinctive in some way. The competitive firm faces a perfectly elastic (flat) demand curve because the firm can sell the quantity it wishes at the market price. In contrast the demand curve faced by a monopolist is the market demand curve (because is the only firm in the market).
The demand curve faced by a monopolist competitor is not flat but rather downward-sloping. That means that can raise its price without losing all of its customers or lower its price and gain more customers.
