If the demand curve facing a firm is sharply downward-sloping, the firm is likely to...
ECONOMICS
JAMB 2003
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: B. a monopolist as it can have a great influence on price
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