The monopolist's demand curve is ______ that of the perfect competitor;the monopolist's marginal revenue curve is ______ that of the perfect competitor.
A)identical to;identical to
B)different from;different from
C)identical to;different from
D)different from;identical to

Question

Quizplus · Accepted Answer

The monopolist's demand curve is different from that of the perfect competitor because a monopolist faces the market demand curve directly, while a perfect competitor is a price taker and faces a perfectly elastic demand at the market price. The monopolist's marginal revenue curve is also different from that of the perfect competitor, as it lies below the demand curve due to the downward sloping demand, whereas for a perfect competitor, the marginal revenue is equal to the market price.

The Monopolist's Demand Curve Is ______ That of the Perfect