Problem
1. Why is the demand curve facing a monopolist downward sloping while the demand curve facing a perfectly competitive firm is horizontal?
2. Suppose an investigator finds that the prices charged for drugs at a hospital are higher than the prices charged for the same products at drugstores in the area served by the hospital. What might explain this situation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.