Question

A monopolist has market power because it O Is a price taker. Faces a downward-sloping demand curve for its own output. O Can raise price as much as it wishes and not lose any customers. 0 Is regulated by the government. none of the Answers are correct.

Answer 1

Answer option 2)

Monopolist is a price maker, & not price taker

But it can't raise price as much as it want, bcoz then it will lose market share

Monopolist if regulated, can not have market power

So if demand curve slooes downwards, then it is imperfect Competition, then firm has market power