Question

Which of the following statements is not true? Select the correct answer below:

A) a monopolist faces a downward sloping demand function

B)a perfectly competitive firm can choose any quantity it wants at the given market price

C)a monopolist has the power to charge any price it wants regardless of the choices of consumers

D)a perfectly competitive firm cannot influence the market price

Answer 1

Perfect competition market type where-

there are large number of sellers and buyers in the market

Prices only decided by the market forces and not by the buyer and the seller so a firm cannot influence the market price change .

The firm has not power in perfect competition to choose any quantity what it wants to sell in the market.

Monopoly is a Market type where there is one seller and large number of buyers in the market.

Since it is the price maker so has a power to charge any price.

The monopolist faces the downward sloping demand function.

Show the only not true answer here is option d