What is the demand curve for a monopoly?

Because the monopolist is the only firm in the market, its demand curve is the same as the market demand curve, which is, unlike that for a perfectly competitive firm, downward-sloping.

What is a single price monopoly?

A single-price monopoly is a firm that must sell each unit of its output for the same price to all its customers. DeBeers sell diamonds (quality given) at a single price.

Is the demand curve for a monopoly perfectly inelastic?

The demand curve faced by a perfectly competitive firm is perfectly elastic, meaning it can sell all the output it wishes at the prevailing market price. The demand curve faced by a monopoly is the market demand. It can sell more output only by decreasing the price it charges.

Does a monopoly have a downward demand curve?

Monopolists face downward sloping demand curves because they are the only supplier of a particular good or service and the market demand curve is therefore the monopolist’s demand curve.

How does a single price monopoly determine the price it will charge its customers?

Determining Price and Quantity Profit maximization for a monopoly charging a single price will occur where marginal revenue is equal to marginal cost. It is important to note that this gives the profit maximizing quantity but the price is determined by going up to the demand curve.

Which of the following is a characteristic of a single price monopoly?

Price exceeds marginal revenue is a characteristic of a single-price monopoly.

What is true about the pure monopolist’s demand curve?

For a pure monopolist, marginal revenue is less than price because: perfectly elastic.

Do monopolies want elastic or inelastic demand?

The monopolist will want to be on the elastic portion of the demand curve, to the left of the midpoint, where marginal revenues are positive. The monopolist will avoid the inelastic portion of the demand curve by decreasing output until MR is positive.

Why does demand curve of monopolist not vertical or perfectly inelastic?

Demand curves in monopolistic competition are not perfectly elastic: due to the market power that firms have, they are able to raise prices without losing all of their customers. Demand curve in a perfectly competitive market: This is the demand curve in a perfectly competitive market.

How does a single price monopoly determine the price it will charge its customers why can a monopoly make a positive economic profit even in the long run?

Answer and Explanation: A single-price monopoly determines the output at the level of price where the marginal revenue equals the marginal cost.

Which of the following is always true when a single price monopolist maximizes its profit?

Which of the following is ALWAYS true when a single−price monopolist maximizes its​ profit? less output. Is a single−price monopoly​ efficient?

Why monopoly demand curve is downward sloping?

The downward‐sloping market demand curve indicates that the new market price will be lower than before. Because the monopolist cannot price discriminate, it will have to sell all N + 1 units of output at the new lower price.