In a monopoly market structure, the industry demand
A) is horizontal and the firm's demand is vertical
B) is downward sloping and the firm's demand is horizontal
C) is vertical and the firm's demand is horizontal
D) and the firm's demand are identical
E) is downward sloping and the firm's demand is vertical

Question

Quizplus · Accepted Answer

In a monopoly market structure, there is only one firm that constitutes the entire industry. Therefore, the demand curve faced by the firm is the same as the industry demand curve, which is typically downward sloping. This reflects that the monopolist can sell more only by lowering the price.

In a Monopoly Market Structure, the Industry Demand