Since a monopolist faces a downward sloping demand curve,
A)the monopolist is able to sell all that it wants at whatever price the monopolist chooses.
B)it is necessary for the monopolist to lower the price to sell additional units of the good.
C)the monopolist sells only a fraction of the total sales of the good in the market.
D)the monopolist must always make an economic profit.

Question

Since a monopolist faces a downward sloping demand curve,
A)​the monopolist is able to sell all that it wants at whatever price the monopolist chooses.
B)​it is necessary for the monopolist to lower the price to sell additional units of the good.
C)​the monopolist sells only a fraction of the total sales of the good in the market.
D)​the monopolist must always make an economic profit.

Quizplus · Accepted Answer

A monopolist faces a downward sloping demand curve, which means that if the monopolist wants to sell more units, it has to lower the price. This is because consumers are willing to buy more at lower prices. Therefore, the monopolist cannot sell all it wants at any price it chooses. The other options are also incorrect. The monopolist may choose not to sell all units in order to keep prices high and maximize profits, and it may not always make an economic profit due to factors such as production costs.

Since a Monopolist Faces a Downward Sloping Demand Curve