Firms that have downward-sloping demand curves:
A)earn positive economic profits even in the long run.
B)produce homogeneous products.
C)operate in a perfectly competitive market structure.
D)enjoy monopoly or market power.
E)be price takers.

Question

Quizplus · Accepted Answer

Firms that have downward-sloping demand curves enjoy monopoly or market power, which means they have the ability to influence the market price of their product. This gives them control over the quantity they sell and the price they charge, which can result in positive economic profits even in the long run.

Firms That Have Downward-Sloping Demand Curves