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The demand curve for a monopolist differs from the demand curve faced by a competitive firm?
Wiki User
∙ 12y ago
The pure monopolist's market situation differs from that of a competitive firm in that the monopolist's demand curve is downsloping, causing the marginal-revenue curve to lie below the demand curve. Like the competitive seller, the pure monopolist will maximize profit by equating marginal revenue and marginal cost. Barriers to entry may permit a monopolist to acquire economic profit even in the long run.
Wiki User
∙ 12y ago
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Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
A firm in a monopolistically competitive market is similar to a monopolist in the sense that it?
faces a downward-sloping demand curve
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
The nondiscriminating pure monopolist's demand curve is the industry demand curve.?
yes
The demand curve any monopolist uses in making output decisions is?
the same as the market demand curve.
A firm in a monopolistically competitive market is similar to a monopolist in the sense that it?
faces a downward-sloping demand curve
Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
The nondiscriminating pure monopolist's demand curve is the industry demand curve.?
yes
The demand curve any monopolist uses in making output decisions is?
the same as the market demand curve.
When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
How does the elasticity of the monopolistic competitor's demand curve compare to that of a pure competitor or a pure monopolist?
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
Would a monopolist ever operate in the in elastic portion of demand curve?
yes
What will a monopolist firm do if it's demand curve lies below its average variable cost curve?
It will shut down.
Why monopoly has no suply curve?
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
What is the condition of equilibrium for monopolist?
Marginal Revenue = Marginal Cost; mark-up price to the demand curve.
A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
