A purely monopolistic firm_____________.

A. has no entry barriers.
B. produces a product or service for which there are many close substitutes.
C. earns only a normal profit in the long run.
D. faces a downsloping demand curve.

Respuesta :

Answer:

The correct answer is D

Explanation:

Purely monopolistic market or firm, is the one where the monopoly firm restrict the output and result in rise in price of the product and firm enjoys super normal profits in the long period.

The firm will face curve which is downward sloping, it means that the customers demand will more of the products when there is fall or decrease in the price. So, it could face this if price falls.