A monopolist always faces a demand curve that is:
A) perfectly inelastic.
B) perfectly elastic.
C) unit elastic.
D) the same as the entire market demand curve.

Question

Quizplus · Accepted Answer

A monopolist faces the entire market demand curve, as they are the only seller in the market and can set the price. The demand curve for a monopolist is downward sloping, but not perfectly elastic or inelastic. It is also not necessarily unit elastic, as this would depend on the specific demand function for the product.

A Monopolist Always Faces a Demand Curve That Is