The demand curve confronting a nondiscriminating pure monopolist is
A) horizontal.
B) the same as the industry's demand curve.
C) more elastic than the demand curve confronting a competitive firm.
D) derived by vertically summing the individual demand curves for the buyers.

Question

Quizplus · Accepted Answer

The demand curve confronting a nondiscriminating pure monopolist is the same as the industry's demand curve because the monopolist is the only seller in the industry and therefore faces the entire market demand. The monopolist can set the price at any level on this demand curve, and the corresponding quantity demanded will be the quantity that the monopolist chooses to produce and sell.

The Demand Curve Confronting a Nondiscriminating Pure Monopolist Is