In a monopolistically competitive industry, when a business faces a downward sloping demand curve, it will choose a combination of quantity and price to maximize its profit.
What is monopolistically competitive industry?
A monopolistically competitive industry can be defined as the industry that are competitive and have many companies that sell products that are similar in which the product on the other hand are not perfect substitutes.
Hence, in a situation where a business faces a downward sloping demand curve, this means that the business will tent to go for a combination of quantity with price so as to maximize its profit.
Learn more about monopolistically competitive industry here:https://brainly.com/question/25717627
#SPJ1
