Any firm that operates in an imperfectly competitive market faces a downward-sloping demand curve for its product.

Question

Quizplus · Accepted Answer

This is because in an imperfectly competitive market, the firm does not have complete control over the price of its product, and therefore must adjust quantity sold in response to changes in price. This results in a downward-sloping demand curve, as the quantity demanded decreases as price increases.

Any Firm That Operates in an Imperfectly Competitive Market Faces