The demand curve for the product of a firm in a competitive market is ________,and the demand curve for the product of a monopolist is ________.
A) horizontal; downward sloping
B) horizontal; horizontal
C) downward sloping; upward sloping
D) downward sloping; horizontal
E) upward sloping; downward sloping

Question

Quizplus · Accepted Answer

In a competitive market, the demand curve for the product of a firm is horizontal, indicating that the firm is a price taker and can sell any quantity at the market price. For a monopolist, the demand curve is downward sloping, showing that the monopolist can set its price, and higher prices will lead to lower quantities sold.

The Demand Curve for the Product of a Firm in a Competitive