A monopolistic firm faces a continuously downward-sloping ________ curve.
A) demand
B) supply
C) marginal cost
D) average total cost

Question

Quizplus · Accepted Answer

A monopolistic firm faces a continuously downward-sloping demand curve because it has some degree of market power, allowing it to set prices above marginal cost. Unlike in perfect competition, where firms are price takers and face a horizontal demand curve, a monopolist can influence the market price of its product.

A Monopolistic Firm Faces a Continuously Downward-Sloping ________ Curve