For a monopoly firm, the firm's demand curve is downward sloping to the right because its demand curve and the industry demand curve coincide.

Question

Quizplus · Accepted Answer

A monopoly firm represents the entire industry as it is the sole seller of the product or service in the market, hence its demand curve is the same as the industry's demand curve, which is typically downward sloping to the right, indicating that as price decreases, quantity demanded increases.

For a Monopoly Firm, the Firm's Demand Curve Is Downward