What is the demand curve in monopoly market?

In Panel (b) a monopoly faces a downward-sloping market demand curve. As a profit maximizer, it determines its profit-maximizing output. Once it determines that quantity, however, the price at which it can sell that output is found from the demand curve.

What is the shape of demand curve in monopoly competition?

The demand curve for an individual firm is downward sloping in monopolistic competition, in contrast to perfect competition where the firm’s individual demand curve is perfectly elastic. This is due to the fact that firms have market power: they can raise prices without losing all of their customers.

Is a monopoly demand curve elastic or inelastic?

completely elastic
Pure Monopoly: Demand, Revenue And Costs, Price Determination, Profit Maximization And Loss Minimization. For a seller in a purely competitive market, the demand curve is completely elastic, and, therefore, horizontal in a price-quantity graph.

Why is demand curve downward sloping in monopolistic competition?

The demand curve facing a firm in monopolistic competition is downward-sloping. It is because due to the differentiated nature of products, they are not perfect substitutes for each other. This gives each firm some ability to set its own price.

Why is demand curve of a monopoly firm less elastic?

This demand curve will be considerably more elastic than the demand curve that a monopolist faces because the monopolistically competitive firm has less control over the price that it can charge for its output.

Why is the demand curve in monopolistic competition more elastic than a monopoly?

Firm’s demand curve under monopolistic competition is more elastic than under monopoly because of availability of close substitutes under monopolistic competition.

Why the monopolistic demand curve is flatter than the monopoly demand curve?

Since there are substitutes, the demand curve facing a monopolistically competitive firm is more elastic than that of a monopoly where there are no close substitutes. If a monopolist raises its price, some consumers will choose not to purchase its product—but they will then need to buy a completely different product.