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A monopoly firm face

  • A.A horizontal demand curve
  • B.A downward-sloping market demand curve
  • C.A vertical demand curve
  • D.A backward bending demand curve

Answer: B

A monopoly firm is the only seller, so it faces the whole market demand, which is a downward sloping curve: to sell more it has to lower the price. A horizontal demand curve belongs to a perfectly competitive firm, a vertical one to a fixed supply and a backward bending curve to special cases like labour supply. The answer is option B.

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