A monopolist faces a
A)horizontal demand curve.
B)vertical demand curve.
C)downward-sloping demand curve.
D)U-shaped demand curve.

Question

Quizplus · Accepted Answer

A monopolist faces a downward-sloping demand curve because in a monopoly market, the firm is the sole producer and seller of the product, hence it has control over the price of the product it produces. This means that as the firm raises the price of the product, the quantity demanded by consumers decreases, resulting in a downward-sloping demand curve.

A Monopolist Faces a