Free entry and exit -> like perfect competition. Downward sloping demand curve -> like monopoly. These firms are the only ones that are able to be in this market and selling these products. Demand curve is much more elastic than monopoly (gentler slope) Determining the profit-maximizing quantity for a monopolistically competitive firm. The point where marginal cost (mc) is equal to marginal revenue(mr) Price is the point on the demand curve at q mc. Demand curve is higher than average cost curve. Firms will want to enter the market and the demand for the products or services of a q mc monopolistically competitive firm will decrease which means the demand curve for the firm will shift left. As the demand curve shifts to the left, the marginal revenue also shifts to the left. The demand curve will only shift left until it is tangent to the average cost curve.