The demand curve that a monopolist faces is
A) the market demand curve.
B) the same as the demand curve that faces a perfectly competitive firm.
C) not affected by changes in the prices of other goods.
D) generally flatter than the demand curve that faces a perfectly competitive firm.

Question

Quizplus · Accepted Answer

The demand curve that a monopolist faces is the market demand curve because it is the only seller in the market. The monopolist has the power to set the price for its product, unlike a perfectly competitive firm, which is a price taker. The demand curve for a monopolist is generally steeper than the demand curve for a perfectly competitive firm because the monopolist has market power and can charge higher prices.

The Demand Curve That a Monopolist Faces Is