When speaking of a pure monopolist, we know that the demand curve for its product:
A) is the same as the market demand curve due to barriers to entry.
B) and the market demand curve are both perfectly horizontal at the going market price.
C) is perfectly horizontal at the going market price because of barriers to entry that allow the monopolist to keep rivals out of the market.
D) all of the above.

Question

Quizplus · Accepted Answer

A pure monopolist faces the market demand curve directly because it is the only supplier in the market. This is due to barriers to entry that prevent other firms from entering the market and competing. Choices B and C describe perfectly competitive markets, not monopolies.

When Speaking of a Pure Monopolist, We Know That the Demand