Which of the following statements is correct?
A) Monopolies are guaranteed to earn an economic profit.
B) The market demand and the firm's demand are the same for a monopoly.
C) Monopolies have perfectly inelastic demand for the product sold.
D) Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve.
E) Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.

Question

Quizplus · Accepted Answer

In a monopoly, the firm is the sole provider of a good or service, making the market demand curve the same as the firm's demand curve, as there are no other firms from which consumers can purchase the product.

Which of the Following Statements Is Correct