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Why Does a Typical Monopolistically Competitive Firm Face a Downward-Sloping

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Why does a typical monopolistically competitive firm face a downward-sloping demand curve?


Definitions:

Intimate Space

Zone of space most often used for very personal or intimate interactions, ranging from 0 to 1½ feet between individuals.

Personal Space

Zone of space most often used for conversations with family and friends, ranging from 1½ to 4 feet between individuals.

Social Space

Zone of space most often used for group interactions, ranging from 4 to 12 feet between individuals.

Public Space

Zone of space most often used by public speakers or anyone speaking to many people, ranging beyond 12 feet from the individual.

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