Which of the following is true of the demand curve faced by a monopolist?
A)A monopolist's demand curve is infinitely elastic.
B)A monopolist's demand curve is more elastic than a competitive firm's demand curve.
C)A monopolist faces a relatively inelastic demand curve.
D)A monoplist's demand curve coincides with its marginal revenue curve.
E)A monopolist faces a positively sloped demand curve.

Question

Quizplus · Accepted Answer

A monopolist faces less competition and has the ability to influence the market price to some extent. As a result, the demand curve faced by a monopolist is typically more inelastic than the demand curve faced by a competitive firm, which means a change in price will lead to a relatively smaller change in quantity demanded.

Which of the Following Is True of the Demand Curve