Which of the following statements is incorrect? The demand curve facing a competitive firm is perfectly elastic, whereas the demand curve facing a monopolist is downward sloping. The demand curve facing a competitive firm is horizontal, whereas the demand curve facing a monopolist is downward sloping The demand curve facing a competitive firm is downward sloping, whereas the demand curve facing a monopolist is horizontal. The demand curve facing a competitive firm is equal to the market price, but the demand curve facing a monopolist slopes downward.

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.