A monopoly is a ________, therefore the demand curve it faces is ________
A)price taker, downward-sloping
B)price taker, horizontal
C)price setter, downward-sloping
D)price setter, horizontal

Question

Quizplus · Accepted Answer

A monopoly is a price setter because it is the only seller in the market and can set the price of its product. The demand curve it faces is downward-sloping, indicating that as the price increases, the quantity demanded decreases, and vice versa.

A Monopoly Is a ________, Therefore the Demand Curve It