In P-competitive industry, we have to distinguish between the industry demand and the demand for the output of an individual firm, which are quite different. As we recall, the P-competitive firm has a horizontal demand curve. More general, if there are two or more firms in an industry, we have to distinguish between the industry demand and the firm demand. But in a monopoly -- an industry with only one firm -- there is no such distinction.
The demand curve for the monopoly is the demand curve for the industry -- since the monopoly controls the output of the entire industry -- and the industry demand curve is downward sloping. So the monopoly's demand curve is downward sloping, That means the monopoly can push the price up by limiting output. If the monopoly cuts back on its output, it can move up the industry demand curve to a higher price.
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