The demand curve facing a monopoly firm is
A) horizontal at the market equilibrium price.
B) equivalent to the firm's marginal cost curve.
C) equivalent to the market demand curve.
D) upward sloping when the firm experiences economies of scale.

Question

Quizplus · Accepted Answer

The demand curve facing a monopoly firm is equivalent to the market demand curve because the monopoly is the sole provider of the good or service in the market, thus facing the entire market demand.

The Demand Curve Facing a Monopoly Firm Is