A monopolist's demand curve is _____
A)its marginal cost curve.
B)its marginal revenue curve.
C)identical to its market demand curve.
D)the same as the demand curve faced by a firm in perfect competition.
E)the same as its average cost curve.

Question

Quizplus · Accepted Answer

A monopolist's demand curve is not identical to its marginal cost curve or average cost curve since a monopolist chooses the quantity where marginal cost equals marginal revenue, not where marginal cost equals price. The monopolist's demand curve is not identical to the demand curve faced by a perfectly competitive firm because the monopolist has market power and can choose the price and quantity it produces. Therefore, the best choice is C, which states that a monopolist's demand curve is identical to its market demand curve.

A Monopolist's Demand Curve Is _____