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 the wholesale demand.
B)It is the consumers' market demand.
C)It is the distributors' demand.
D)It is a derived demand.

Question

Quizplus · Accepted Answer

If the monopoly firm sells to competitive distributors, the demand it faces is only from the distributors and not directly from the final consumers. Therefore, it is not the consumers' market demand. The other options - wholesale demand, distributors' demand, and derived demand - all hold true for a monopoly firm selling to competitive distributors.

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