The demand curve faced by a pure monopolist
A)may be either more or less elastic than that faced by a single purely competitive firm.
B)is less elastic than that faced by a single purely competitive firm.
C)has the same elasticity as that faced by a single purely competitive firm.
D)is more elastic than that faced by a single purely competitive firm.

Question

Quizplus · Accepted Answer

A pure monopolist faces a demand curve that is less elastic than that faced by a single purely competitive firm because the monopolist is the sole provider of a particular product or service, whereas a firm in pure competition faces many competitors, making it easier for consumers to switch to other providers.

The Demand Curve Faced by a Pure Monopolist