Which of the following statements about a monopolist is FALSE?
A) A pure monopolist is the sole supplier of one product, good, or service.
B) The monopolist faces a demand curve for the entire market for that good.
C) A pure monopolist is not the same as a perfect competitor.
D) The monopolist faces the industry demand curve, which is upward sloping.

Question

Quizplus · Accepted Answer

The statement that the monopolist faces the industry demand curve, which is upward sloping, is false. A monopolist faces a downward sloping demand curve, as it is the only supplier and customers have no alternative options. The monopolist has the power to set the price and adjust the quantity of the product based on its profit-maximizing strategy.

Which of the Following Statements About a Monopolist Is FALSE