A monopolist faces a downward demand curve because it is the sole supplier of a particular good or service and therefore the market demand curve is that of the monopolist. How much market power a firm has depends on the shape of the demand curve.
This demand curve is much more elastic than the demand curve faced by monopolies. This is because a monopolistically competitive firm has less control over the prices it can charge for its output.
The monopolist's demand curve is perfectly inelastic, while the competitor's demand curve is perfectly elastic. A monopolist can influence the market price, but a competitor cannot. Competitive firms have a U-shaped average cost curve, monopolies do not.
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