The demand curve for a

Question

Quizplus · Accepted Answer

A) A monopoly firm faces the entire market demand, which is typically downward sloping because as price decreases, quantity demanded increases. B) The monopoly industry, being the market itself, also has a downward-sloping demand curve for the same reason. C) A perfectly competitive firm is a price taker and faces a perfectly elastic demand at the market price, represented by a horizontal demand curve. D) The industry demand curve in a perfectly competitive market is downward sloping, indicating that the total market demand falls as prices rise and vice versa.

The Demand Curve for a