A monopoly's demand curve most likely
A)is less elastic than a competitive firm's demand curve.
B)does not exist.
C)has the same elasticity as a competitive firm's demand curve.
D)is more elastic than a competitive firm's demand curve.
E)could be more or less elastic than a competitive firm's demand curve, depending on the level of output.

Question

Quizplus · Accepted Answer

A monopoly has market power and can potentially influence the price of its product, leading to a less elastic demand curve compared to a perfectly competitive firm. A competitive firm has to take the market price as given and has a more elastic demand curve.

A Monopoly's Demand Curve Most Likely