Question

The demand curve of a firm under monopoly is ______

Options

• Downward sloping

• Indeterminate

• Upward sloping

• Perfectly elastic

Answer 1

The demand curve of a firm under monopoly is Downward sloping.

Explanation:

A monopoly is a market situation in which there is a single seller, no close substitutes for the commodity produced, and barriers to entry for new firms. The price is set by the monopolist himself. As a result, a monopolist faces a downward-sloping demand curve, indicating that more can only be sold at a lower price.