The demand curve facing a monopolist is:
A)horizontal,the same as that facing a perfectly competitive firm.
B)downward sloping,the same as that facing a perfectly competitive firm.
C)upward sloping,the same as that facing a perfectly competitive firm.
D)downward sloping,unlike the horizontal demand curve facing a perfectly competitive firm.

Question

Quizplus · Accepted Answer

A monopolist faces a downward sloping demand curve because they are the only supplier of a particular good or service and so can control the price. In contrast, a perfectly competitive firm faces a horizontal demand curve because they are a small player in a large market and must take the market price.

The Demand Curve Facing a Monopolist Is