Question

The demand curve for a​ monopoly's product is A. more inelastic than the market demand for the product. B. undefined. C. the market demand for the product. D. more elastic than the market demand for the product.

Answer 1

The demand curve for a monopoly's product is the same as the market demand curve since the monopolist is the sole producer in the market and does not share it with competitors.

Step-by-step explanation:

The demand curve for a monopoly's product is the market demand curve for that product. Unlike a perfectly competitive firm, which faces a perfectly elastic demand curve, a monopolist does not share the market with other competitors so its demand curve is not just a part of the market demand curve, but rather the entire demand curve itself. As the producer is the only producer in the market, the monopolist's demand curve of the person is downward-sloping, showing that it can sell more only by lowering the price.

Answer 2

C. The market demand for the product

Step-by-step explanation:

Monopoly is a market situation whereby the market is characterized with having a single seller and multiple buyers. Here, the seller faces no competition as he is the only one selling that particular product in the market. The monopolist faces a downward sloping market demand curve. As a result, as the monopolist increases its output, for every additional unit of output, the process must fall. Thus, leasing to the consequent fall in the marginal revenue. Thos os because, since he is the only sellers in order to sell more outputs he must reduce the prices oer each output.