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If the demand curve facing a firm is sharply downward-sloping, the firm is likely to…

If the demand curve facing a firm is sharply downward-sloping, the firm is likely to be
  • A.
    a monopolistic competitor as it can have a limited influence on price
  • B.
    a monopolist as it can have a great influence on price
  • C.
    a perfect competitor as it cannot influence the market price
  • D.
    an oligopolist as it can collude with other firms to have some influence on price
Correct Answer: Option B
Explanation