A purely monopolistic firm faces downward sloping demand curve.
- A monopolistic market is the inverse of a completely competitive market, in which there are an infinite number of enterprises. In a truly monopolistic model, the monopoly firm can limit output, raise prices, and earn super-normal profits over time.
- Exists when a single company is the sole manufacturer of a product that has no close substitutes. A number of products have a significant amount of monopoly power and are referred to as "near" monopolies.
- The demand curve facing a pure monopolist is slanted downward; the demand curve facing a purely competitive enterprise is horizontal and totally elastic. This is true for a pure competitor because the firm faces a slew of competitors, all of whom provide perfect equivalents.
Thus the correct answer is option d.
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