The Monopolist's Demand Curve Slopes Downward Because

question 39

Multiple Choice

The monopolist's demand curve slopes downward because:

• A)the good sold by a monopolist is easily substitutable.
• B)the monopolist is a price maker in the market.
• C)average revenue decreases with each unit sold.
• D)the marginal product of labor is diminishing.

---

Definitions:

Tax Imposed

A compulsory financial charge or some other type of levy placed upon a taxpayer by a governmental organization to fund government spending and various public expenditures.

Consumer Surplus

The gap between what a consumer is prepared to spend on a good or service and the price they actually end up paying.

Market Equilibrium

A condition or state in an economy where supply and demand are equal, leading to stable prices and quantities.

Units Bought

The quantity of a product that consumers purchase at a given price.