A monopolist faces a demand curve that is
A) more elastic than a perfectly competitive firm's demand curve
B) the market demand curve
C) downward sloping as is the perfectly competitive firm's demand curve but the monopoly's demand curve is more inelastic
D) horizontal as is the perfectly competitive firm's demand curve but the monopoly's demand curve is more inelastic
E) totally insensitive to changes in consumer tastes

Question

Quizplus · Accepted Answer

A monopolist faces the market demand curve because it is the only seller in the market, unlike firms in perfect competition which face a perfectly elastic demand curve due to the presence of many sellers.

A Monopolist Faces a Demand Curve That Is