Q.42 PM Mock

Sorry if this question has been asked, but I think the answer to this could be A., as well, if it’s a perfect competition. Am I wrong?

Because demand curve is downward sloping, this is monopolistic competition not perfect competition. By definition a downward instead of a horizontal demand curve faced by the firm indicates pricing power.

Thank you! That’s what I was thinking, as well, but it’s not quite clear that this is the demand curve faced by an individual firm.