A monopolist's demand curve is
A)its marginal cost curve
B)its marginal revenue curve
C)identical to the market demand curve
D)the same as the demand curve of a firm in perfect competition
E)nonexistent

Question

Quizplus · Accepted Answer

A monopolist's demand curve is not identical to its marginal cost curve or its marginal revenue curve as they intersect at different points. It is also not the same as a firm in perfect competition as a monopolist has market power. However, a monopolist's demand curve reflects the entire market demand for its product, since there are no close substitutes available.

A Monopolist's Demand Curve Is