The market demand curve and the demand curve facing the firm are the same in all imperfectly competitive markets.

Question

Quizplus · Accepted Answer

In imperfectly competitive markets, the market demand curve and the demand curve facing the firm are not necessarily the same. This is because the firm may have some control over the price and quantity it produces, which can affect the market demand curve. Additionally, the firm's individual demand curve may be influenced by factors such as brand loyalty or product differentiation, which may not apply to the overall market demand curve.

The Market Demand Curve and the Demand Curve Facing the Firm