The Demand Curve for a Monopoly Is

question 30

Multiple Choice

The demand curve for a monopoly is:

• A) downward sloping, and therefore the monopoly is a price setter.
• B) inelastic throughout its entire range.
• C) downward sloping and therefore the monopoly is a price taker.
• D) horizontal at the market-determined price.

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Definitions:

Medium Of Exchange

A tool that assists in the buying, selling, or exchanging of goods among different parties.

Cash

Liquid currency including coins and banknotes that is used to facilitate transactions and settle debts.

Stocks

Shares of ownership in a company, representing a claim on part of the company's assets and earnings.

Fiat Money

Currency that a government has declared to be legal tender, but it is not backed by a physical commodity.