Principles of Microeconomics / Unit 8 MIC 0709 short lesson, about 20 seconds
The Monopolist's Demand Curve Is the Market's
Captions available
The idea
A competitive firm sees a flat demand curve. A monopolist is the market, so its demand curve is the market's, sloping down: it sells more only by charging less.
In practice
To move a thousand more doses, the firm must cut the price for every dose.
Where people slip
Even a monopolist is bound by demand: any point on the curve, not any point it likes.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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