Monopoly firms have a downward sloping curve in the short-run because
A)They have no close substitutes
B)There are no barriers to entry
C)They have no cost advantage over their rivals
D)None of the above

Question

Quizplus · Accepted Answer

Monopoly firms have a downward sloping curve in the short-run because they have no close substitutes. This means that customers have no other options to choose from and are willing to pay higher prices for the product or service, resulting in a downward sloping demand curve.

Monopoly Firms Have a Downward Sloping Curve in the Short-Run