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Question
The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.
Options
True
False
Solution
This statement is True.
Explanation:
A monopolist faces a downward-sloping demand curve, which means in order to boost sales, the monopolist must lower the price. This is because, in a monopoly, the firm is the only source of the goods, and if it wants to sell more, it must lower the price to attract more buyers, as it cannot sell an unlimited number at a high price.
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RELATED QUESTIONS
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| Column I | Column II | ||
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| (ii) | Monopoly | (B) | Few large firms |
| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
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