Graphically we can illustrate a firm with price- setting ability by drawing their demand curve as _______.

Question

Quizplus · Accepted Answer

A firm with price-setting ability, often referred to as a monopolist or a firm in imperfect competition, faces a downward-sloping demand curve. This illustrates that as the price decreases, the quantity demanded increases, and vice versa, indicating the firm has some control over the price it sets.

Graphically We Can Illustrate a Firm with Price- Setting Ability