The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopolist's demand curve is less elastic than a perfect competitor's demand curve.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopolist's demand curve is less elastic than a perfect competitor's demand curve.

Quizplus · Accepted Answer

This is because the monopolist is the sole supplier of a particular product or service, and there are no close substitutes available in the market. Therefore, the monopolist can charge a higher price than a perfect competitor, as consumers have no choice but to purchase the product at the monopolist's price. This results in a less elastic demand curve for the monopolist compared to a perfect competitor.

The Figure Given Below Shows the Cost and Revenue Curves