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The monopolistic competitive firm sells​ _________ product and faces​ _________ demand curve.

a. a​ homogeneous; a horizontal
b. a​ differentiated; a horizontal
c. a​ differentiated; a​ downward-sloping
d. a​ homogeneous; a​ downward-sloping

User Mopsled
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1 Answer

4 votes

Answer:

d. a​ homogeneous; a​ downward-sloping

Step-by-step explanation:

The monopoly is a market structure where there is a single bidder of a certain good or service, that is, a single company dominates the entire supply market, and there is a homogeneous product or there are no nearby substitutes. When there is a monopoly in a market, there is only one company capable of offering a product or service that does not have close substitutes.

The monopoly faces a negative slope demand curve: depending on the price set buyers will demand more or less.

User Jbouwman
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