A monopolist faces
A) a perfectly elastic demand curve.
B) a perfectly inelastic demand curve.
C) the market demand curve.
D) a two-tiered demand curve.

Question

Quizplus · Accepted Answer

A monopolist faces the market demand curve, which shows the quantity of a good or service that consumers are willing and able to purchase at different prices. They are able to set their own price based on their market power, but they must consider the market demand curve in order to maximize profits. A perfectly elastic demand curve means that consumers will not buy the product at any price higher than a certain level, and a perfectly inelastic demand curve means that consumers will pay any price for the product. These scenarios do not apply to a monopolist. A two-tiered demand curve is a theoretical concept that does not apply to most real-world monopolies.

A Monopolist Faces