A monopolist
A) is a price searcher.
B) is a price taker.
C) faces an upward sloping demand curve.
D) faces a vertical demand curve.

Question

Quizplus · Accepted Answer

A monopolist is a price searcher, meaning that it has some market power and can set its own price based on its assessment of demand and cost. In contrast, a price taker must accept the prevailing market price and has no ability to influence it. An upward sloping demand curve means that as price increases, demand decreases, which is typical of most goods and services. A vertical demand curve, on the other hand, would mean that demand is perfectly inelastic, and consumers are willing to pay the same price regardless of the quantity supplied. However, such a situation is rare in real-world markets.

A Monopolist