CFA Practice Question
Which of the following is true of a monopolist's demand curve?
A. It is identical with the industry demand curve for the product.
B. It indicates that the monopolist will be able to sell more units at a higher price.
C. It is perfectly inelastic.
Explanation: A monopolist is the sole supplier to a market; therefore, the monopolist provides the industry supply. The demand curve that the monopolist faces, then, is the market demand curve.
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