Question

The demand curve of a monopolist is: A. downward sloping and above the marginal revenue curve. B. kinked because of recognized interdependence with other firms. C. downward sloping and below the marginal revenue curve. D. horizontal at the market price. E. is identical to the marginal cost curve.

Answer 1

Answer:

A) Downward sloping and above the marginal revenue curve.

Explanation:

Monopolies are common in business. A monopolist tends to offer goods and services without any sort of competition. In the law of demand, it says that when the price of a commodity rises, the demand for that commodity falls and if the price of a commodity falls, the demand for that commodity rises. If this is plotted on a graph, it is called a demand curve. On the vertical axis of the plotted graph usually represents the market price of a commodity while the horizontal axis represents the quantity sold. A typical demand curve slopes downwards from the upper left which signifies a high price attracts low demand and to the right, it is a low price attracts high demand. In a monopoly, there are no competitors. Prices are set by monopolists and demand curve acts as a mirror which tells you how much to sell.

  Marginal Revenue is the total revenue gained with each extra sales. In plotting a marginal revenue curve( this is plotted on the same graph as the demand curve), it is usually lower on the graph than the demand curve in a monopoly because the change in price for the next sale applies to all the sales, even the ones before it.

Answer 2

Answer:

A. downward sloping and above the marginal revenue curve. 

Explanation:

A monopoly is when there's only one firm operating in an industry. A monopoly usually sets the market price for goods and services. A monopoly faces a downward sloping demand curve because as price increases, the quantity demanded falls.

I hope my answer helps you