The demand curve of a monopolist is
A) identical to the marginal cost curve.
B) downward sloping and above the marginal revenue curve.
C) downward sloping and below the marginal revenue.
D) elastic because of a recognized interdependence with other firms.

Question

Quizplus · Accepted Answer

In a monopoly, the demand curve is downward sloping because the monopolist can set prices. The marginal revenue curve lies below the demand curve because each additional unit sold decreases the price of all units sold.

The Demand Curve of a Monopolist Is