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A Monopolistic Firm Faces a Downward- Sloping Demand Curve Because

Question 20

Multiple Choice

A monopolistic firm faces a downward- sloping demand curve because


A) the demand for its product is always inelastic.
B) the market price is affected by the amount sold by a monopolistic firm.
C) the monopolistic firm can exploit economies of scale.
D) marginal revenue is negative throughout the feasible range of output.
E) there are a large number of firms in the industry, all selling the same product.

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