With respect to the pure monopolist's demand curve, it can be said that
A) the stronger the barriers to entry, the more elastic is the monopolist's demand curve.
B) price exceeds marginal revenue at all outputs greater than 1.
C) demand is perfectly inelastic.
D) marginal revenue equals price at all outputs.

Question

Quizplus · Accepted Answer

In a monopoly, the demand curve is downward sloping, meaning that to sell more units, the monopolist must lower the price. This causes marginal revenue to be less than the price for all units beyond the first, as each additional unit sold adds less to total revenue than the price at which it is sold.

With Respect to the Pure Monopolist's Demand Curve, It Can