A monopolist's demand curve:
A)is less elastic than a perfectly competitive business's demand curve
B)is perfectly elastic
C)coincides with its marginal revenue curve
D)is perfectly inelastic
E)is very elastic

Question

Quizplus · Accepted Answer

A monopolist's demand curve is less elastic than a perfectly competitive business's demand curve. This is because monopolists have the power to set prices, and there are no close substitutes available for consumers, so they have limited options to switch to another product. Therefore, monopolists can charge higher prices while still maintaining a reasonable level of demand.

A Monopolist's Demand Curve