If the demand curve facing a firm is sharply downward-sloping, the firm is likely to be

If the demand curve facing a firm is sharply downward-sloping, the firm is likely to be a monopolist as it can have a great influence on price. A firm that faces a sharply downward-sloping demand curve has a relatively large market share or market power in the industry, meaning it has the ability to influence the market price. A monopolist is the only supplier of a good or service in the market, giving it the most control over the market price. The more elastic the demand curve facing the firm, the less control it has over the price, and the closer it becomes to a perfect competitor. Therefore, a sharply downward-sloping demand curve is a characteristic of a monopolist, not a monopolistic competitor, perfect competitor, or oligopolist.