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Answer to Question #68453 in Microeconomics for usman
Question #68453
Why is the demand curve facing a monopolistic downward sloping while the demand curve facing a perfectly competitive firm is horizontal?
Expert's answer
If the monopolist offers a certain price in the market place, it will sell a certain quantity of product at that price. If the monopolist wants to sell more product it must lower the price. This is why the demand curve for a monopolist is downward sloping. Perfectly competitive firm cannot effect price by changing certain quantity of product that it sell
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