The demand curve is downwards sloping with price on the vertical axis and quantity demanded on the horizontal axis. This is because as products get more expensive the quantity demanded decreases, other things being equal. Put another way, there is a negative correlation between price and quantity demanded.
Under standard assumptions, we would expect a monopolist to face a downward sloping demand curve in prices (i.e for normal goods that have a negative price elasticity of demand).
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
The demand curve faced by a pure monopolist is of downward sloping in shape.
Usually market demand curves are downward sloping.
The marginal revenue curve describes the incremental change in revenue (that is, price*units sold). The MR is not always equivalent to its demand curve. The more perfect competition is, the closer demand approaches the MR. This is because, in perfect competition, firms sell at the MC = MR = P criterion. In the opposite case, monopoly, MR always lies under of demand, and firms achieve monopoly profits by choosing a production quantity where MC = MR and charging a price mark-up.
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
A monopoly produces at the elastic portion of the demand curve. If producing at the inelastic portion of the deman curve, the monopoly could lower the quantity produced and raise the price to achieve more total revenue.
The demand curve faced by a pure monopolist is of downward sloping in shape.
faces a demand curve that is inelastic throughout the range of market demand. faces a perfectly inelastic demand curve. is a price maker. is also able to dictate the quantity purchased
Usually market demand curves are downward sloping.
Usually market demand curves are downward sloping.
The demand curve cannot be of a rectangular shape since that would imply that the demand is the same at two different price levels even though other factors remain the same.
The marginal revenue curve describes the incremental change in revenue (that is, price*units sold). The MR is not always equivalent to its demand curve. The more perfect competition is, the closer demand approaches the MR. This is because, in perfect competition, firms sell at the MC = MR = P criterion. In the opposite case, monopoly, MR always lies under of demand, and firms achieve monopoly profits by choosing a production quantity where MC = MR and charging a price mark-up.
It is a slope that goes downwards from left to right.
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
Because the monopolist's supply decision cannot be set out independently of demand. since supply curve tells us the quantity that a firm chooses to supply at any given price and on the other hand, a monopoly firm is a price maker; the firrm sets the price and at the same time it chooses the quantity to supply. The market demand curve tells us how much the monopolist will supply.
It is false that the steeper the demand curve the less elastic the demand curve. The steeper line is used in economics to indicate the inelastic demand curve.