The demand curve for a monopoly is:
A) downward sloping, and therefore the monopoly is a price setter.
B) inelastic throughout its entire range.
C) downward sloping and therefore the monopoly is a price taker.
D) horizontal at the market-determined price.

Question

Quizplus · Accepted Answer

The demand curve for a monopoly is downward sloping, which means that as the monopoly increases its price, the quantity demanded decreases. This makes the monopoly a price setter, as it has the power to choose the price at which it wants to sell its product.

The Demand Curve for a Monopoly Is