Because the demand curve for a monopolist is downward sloping,
A) there is no limit on the monopolist's ability to make a profit.
B) the monopolist can sell its product at any price it wants.
C) the monopolist can sell as many units of its product as it wants.
D) the monopolist is a price taker.
E) the monopolist is a price maker.

Question

Quizplus · Accepted Answer

A downward sloping demand curve means that as the price charged by the monopolist increases, the quantity demanded of the product decreases. As a result, the monopolist must make a trade-off between the price charged and the quantity sold. This ability to influence the price of the product makes the monopolist a price maker, not a price taker. However, there may be limits to the price that can be charged, as the monopolist must still consider the effects of price on total revenue and profits.

Because the Demand Curve for a Monopolist Is Downward Sloping