In a monopoly,the market demand curve is
A) the same as the demand curve facing the firm.
B) the summation of all the individual firms' demand curves.
C) nonexistent.
D) the marginal cost curve above minimum average variable cost.

Question

Quizplus · Accepted Answer

In a monopoly, there is only one firm in the market, so the demand curve facing the firm is the same as the market demand curve. The firm has the power to set prices and the market demand curve represents the maximum amount consumers are willing to pay for the product, which the firm can charge.

In a Monopoly,the Market Demand Curve Is