Unlike a perfectly competitive firm, a monopolist faces a demand curve that is
A) upward sloping.
B) horizontal.
C) vertical.
D) downward sloping.

Question

Quizplus · Accepted Answer

A monopolist faces a downward sloping demand curve because, as the monopolist increases the price of a product, consumers will demand less of it. This is in contrast to a perfectly competitive firm, which faces a demand curve that is perfectly elastic or horizontal.

Unlike a Perfectly Competitive Firm, a Monopolist Faces a Demand