Because a monopoly's demand curve is the same as the market demand curve for its product,
A)the monopoly's marginal revenue equals its price.
B)the monopoly is a price taker.
C)the monopoly must lower its price to sell more of its product.
D)the monopoly's average total cost always falls as it increases its output.

Question

Quizplus · Accepted Answer

A monopoly must lower its price to sell more of its product because its demand curve is downward sloping, meaning it faces the entire market demand.

Because a Monopoly's Demand Curve Is the Same as the Market