An industry characterized by a small number of dominant firms that face downward-sloping demand curves is best described as:

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An industry with a small number of dominant firms that face downward-sloping demand curves is best described as an oligopoly. In an oligopoly, the market is dominated by a few large firms, each of which has the power to influence the market price. This is in contrast to a perfect competition market, in which there are a large number of small firms that have no power to influence the market price, and a monopolistic competition market, in which there are a large number of small firms that differentiate their products to create a perceived difference in the minds of consumers.

An Industry Characterized by a Small Number of Dominant Firms