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Unilorin Post-UTME Economics 2024 (Model questions) Question 5

Question 5

Market Structures

The monopolist's demand curve is ________

  1. A.upward sloping
  2. B.downward sloping
  3. C.horizontal
  4. D.below marginal revenue curve
Show the answer and explanation

Answer: B (downward sloping)

Explanation

A monopolist is the whole industry, so to sell more it must lower its price: its demand (AR) curve slopes downward, with MR below it.