The demand curve that a monopolist firm faces is
A) the same as the demand curve facing a perfectly competitive firm except the monopolist is a price maker and the competitive firm is a price taker
B) the same as the demand curve facing a perfectly competitive firm except the monopolist is a price taker and the competitive firm is a price maker
C) horizontal, because there are no close substitutes for its product
D) the same as its industry demand curve
E) vertical, because there are no close substitutes for its product

Question

Quizplus · Accepted Answer

A monopolist faces the market demand curve, which is the same as its industry demand curve, because it is the sole producer in the market.

The Demand Curve That a Monopolist Firm Faces Is