Which of these is NOT true about the demand curve of a monopolist?
A) The firm's demand curve is the same as the market demand curve.
B) The demand curve is downward sloping.
C) The demand curve is perfectly elastic.
D) The marginal revenue curve is below the market demand curve.

Question

Quizplus · Accepted Answer

The demand curve for a monopolist is not perfectly elastic; it is downward sloping, indicating that the monopolist can set prices above marginal cost. A perfectly elastic demand curve would imply that the firm is a price taker, which is not the case for a monopolist.

Which of These Is NOT True About the Demand Curve