Question

Which of the following statements is true?

Options

• Demand curve under monopoly is positively sloped as more quantity can be sold only at a lower price.

• Demand curve under monopoly is negatively sloped as more quantity can be sold only at a lower price

• Demand curve under monopoly is negatively sloped as less quantity can be sold only at a lower price.

• Demand curve under monopoly is negatively sloped as more quantity can be sold only at a higher price.

Answer 1

Demand curve under monopoly is negatively sloped as more quantity can be sold only at a lower price

Explanation:

When a company has a monopoly, it confronts a downward-sloping demand curve from left to right. It means that a monopoly corporation can only sell more at a cheaper price.