Question

A downward-sloping demand curve exists for:

A.   A monopolist, but not for a perfectly competitive firm.

B.   A perfectly competitive firm, but not for a monopolist.

C.   Both a monopolist and a perfectly competitive firm.

D.   Either a monopolist or a perfectly competitive firm depending on the cost of production.

E.    Oligopoly.

Answer 1

A)A monopolist, but not for a perfectly competitive firm.

In monopolistic competition, the demand curve for an individual firm is downward sloping, but in perfect competition, the demand curve for an individual firm is fully elastic.