The demand curve for a monopolist differs from the demand curve faced by a competitive firm because the demand curve for:
A) a competitive firm lies above its marginal revenue curve.
B) a competitive firm is inelastic.
C) a monopolist is the market demand curve.
D) a monopolist lies below its marginal revenue curve.

Question

Quizplus · Accepted Answer

A monopolist is the sole provider of a good or service, so it faces the entire market demand curve, unlike a competitive firm which is a price taker and faces a perfectly elastic demand curve.

The Demand Curve for a Monopolist Differs from the Demand