In a monopoly, the market demand curve is
A) the same as the demand curve facing the firm.
B) the summation of all the individual firm's cost curves.
C) nonexistent.
D) the marginal cost curve above minimum average variable cost.

Question

Quizplus · Accepted Answer

In a monopoly, there is only one firm in the market, so the market demand curve is the same as the demand curve facing the firm. Monopolies face the entire market demand because they are the sole providers of a particular product or service.

In a Monopoly, the Market Demand Curve Is