In the two-period dynamic monopoly,if the monopolist succeeds in selling a sufficiently high quantity in the first period,
A) the second-period demand curve will lie close to the price axis.
B) the second-period demand curve will become horizontal.
C) the second-period demand curve will become unit elastic.
D) the second-period demand curve will shift substantially to the right.

Question

Quizplus · Accepted Answer

If the monopolist sells a high quantity in the first period, it can create a larger customer base or increase consumer awareness, leading to a rightward shift in the second-period demand curve as more consumers are willing to buy the product.

In the Two-Period Dynamic Monopoly,if the Monopolist Succeeds in Selling