A monopolist faces ________.
A) the market demand curve
B) a horizontal demand curve at the market price
C) a vertical demand curve
D) several close substitutes for its product or service

Question

Quizplus · Accepted Answer

A monopolist faces the market demand curve because it is the sole supplier of a particular good or service, and thus, its product does not have close substitutes. This means the demand for its product is not perfectly elastic (horizontal) as it would be under perfect competition, nor is it perfectly inelastic (vertical).

A Monopolist Faces ________