If a monopoly firm sells to competitive distributors, all of the following are true regarding the demand for the monopoly's product except which one?
A)It is a derived demand.
B)It is the consumers' market demand.
C)It depends on the consumers' market demand.
D)It is the distributors' demand.

Question

Quizplus · Accepted Answer

The demand for a monopoly's product, when selling to competitive distributors, is not directly the consumers' market demand but rather a derived demand that depends on it. The distributors' demand for the monopoly's product is influenced by the ultimate demand from consumers, making it a derived demand (A) and dependent on consumers' market demand (C), but it is not the same as the consumers' market demand itself.

If a Monopoly Firm Sells to Competitive Distributors, All of the Following