Monopoly versus competition Monopoly Is the sole producer Has a downward-sloping demand curve Is a price maker Reduces price to increase sales ° Competitive firm Is one of many producers Has a horizontal demand curve Is a price taker ells as much or as little at same priceMonopoly versus Competition • Monopoly – Is the sole producer – Has a downward-sloping demand curve – Is a price maker – Reduces price to increase sales • Competitive Firm – Is one of many producers – Has a horizontal demand curve – Is a price taker – Sells as much or as little at same price