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

Question

Quizplus · Accepted Answer

In a monopoly, the demand curve is downward sloping because the monopolist is the sole provider of the good, and it is above the marginal revenue curve because the monopolist must lower the price to sell additional units, causing marginal revenue to be less than the price.

What Is the Shape of the Demand Curve of a Monopolist