When a second firm enters a monopolist's market, the initial demand curve facing the monopolist will

Question

Quizplus · Accepted Answer

When a second firm enters a monopolist's market, it increases competition, thereby reducing the monopolist's market share. This results in a decrease in the demand for the monopolist's product, leading to a leftward shift of the demand curve. Therefore, the correct answer is A, i.e., the demand curve facing the monopolist will shift to the left.

When a Second Firm Enters a Monopolist's Market, the Initial