Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 9 - Perfect Competition - Exercises - 9.1 Preview of the Four Market Structures - Page 228: 1.2

Answer

Horizontal Negatively

Work Step by Step

The firm-specific demand curve is horizontally sloped for a perfectly competitive firm and negatively sloped for a monopolist. In perfect competition, the price will be equal to the marginal revenue, so the curve will be horizontal. With a monopoly, the curve is negative.
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