Think of a firm that has a monopoly producing milk. The firm's demand curve is
A) identical to the demand curve for milk facing the industry
B) identical to its marginal revenue curve
C) tangent to the firm's ATC curve
D) tangent to its marginal revenue curve
E) more elastic than the demand curve of any perfectly competitive firm producing milk

Question

Quizplus · Accepted Answer

In a monopoly, the firm's demand curve is the same as the market demand curve because the firm is the sole producer in the market.

Think of a Firm That Has a Monopoly Producing Milk