A monopoly
A)faces a perfectly elastic demand.
B)ignores the demand curve because it is the only seller.
C)can raise the price it charges only if it decreases the quantity that it sells.
D)can raise the price it charges and increase the quantity that it sells.
E)faces a perfectly inelastic demand.

Question

Quizplus · Accepted Answer

A monopoly faces a downward-sloping demand curve, meaning it can only raise prices by reducing the quantity sold, as it has market power but must still consider the demand curve's slope.

A Monopoly