Saved Bookmarks
| 1. |
Explain why the demang curve facing a firm under monopolistic competition is negatively sloped ? |
| Answer» SOLUTION :Demand curve facing a FIRM under monopolistic COMPETITION is negatively sloped. It is because there are close substitutes available and the firm is not a price taker. It can sell more only by REDUCING the price. HIGHER the price, lower will be the demand and vice versa. | |