The downward sloping of the Average Revenue curve of the monopolist indicates that he
Answer Details
The downward sloping of the Average Revenue curve of a monopolist indicates that they have control over the price of their product. This is because, unlike in a perfectly competitive market where the price is determined by the market forces of supply and demand, a monopolist can set the price at a level that maximizes their profit. The monopolist faces a downward sloping demand curve, which means that they have to lower the price to sell more units of their product. Therefore, the monopolist has the ability to control the price, but it comes at the expense of lower output. Thus, the monopolist can control either the output or the price, but not both, as there is an inverse relationship between price and quantity demanded.