Question

What is the relationship between a​ monopolist's demand curve and the market demand​ curve? A. A​ monopolist's demand curve is greater than the market demand curve. B. A​ monopolist's demand curve is the same as the market demand curve. C. A​ monopolist's demand curve is upward sloping and the market demand curve is downward sloping. D. The market demand curve has twice the slope of a​ monopolist's demand curve. E. The market demand curve is the sum of the demand curves for all firms in the market. What is the relationship between a​ monopolist's demand curve and its marginal revenue​ curve? A. A​ monopolist's marginal revenue curve has twice the slope of its demand curve due to diseconomies of scale. B. A​ monopolist's demand curve is the same as its marginal revenue curve. C. A​ monopolist's marginal revenue curve has twice the slope of its demand​ curve, because to sell more​ output, a monopoly must lower price. D. A​ monopolist's demand curve is downward sloping and its marginal revenue curve is upward sloping. E. A​ monopolist's marginal revenue curve has half the slope of its demand​ curve, because to sell more​ output, a monopoly must lower price.

Answer 1

Answer:

B) a monopolist's demand curve is the same as the market demand curve

Explanation:

The demand curve is downward sloping for both monopolies and competitive markets. Rational consumers will always buy larger quantities of products or services when their prices are lower, and inversely will buy less when the price if higher. This applies to all types of markets except monopsonies (a lot of suppliers and only one consumer).