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What is the relationship between a? monopolist's demand curve and the market demand? curve?

Question:

What is the relationship between a? monopolist's demand curve and the market demand? curve?

Demand Curve under a Monopoly Supply System vs. The Free Market

In al types of economies (i.e. free market, communistic for example) there are demand curves and supply curves to all commodities and services. In certain times, a single company can obtain monopoly control over a single commodity or product. For instance, during the late nineteenth century, Standard Oil was able to assume virtually total dominance over the oil market in the United States, creating a monopoly.

Answer and Explanation:

The demand curve under a monopoly market is the same demand curve as under a free market system, as consumers maintain the same demand for a product or service. The only difference is the price paid for the product, which is significantly higher in a monopoly economy as opposed to a market economy. Under a monopoly economy, one business is able to assert dominance on the supply of a product or commodity. As such, they can charge a higher price for that good regardless what the demand is. On the other hand, in a market economy, though demand is the same, firms have to compete in supplying the good or service, making the price much lower than under a monopoly.


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