Question

In monopoly market structure, the industry demand curve is the ____________.

• A. average revenue curve of a firm
• B. marginal revenue curve of a firm
• C. marginal cost curve of a firm
• D. none of the above

Answer 1

Answer: (A)

average revenue curve of a firm

A monopolist is the single seller for a particular product, thus, there lies no difference between the firm and industry. The industry demand curve is same as the demand curve for the monopolist firm.
The average revenue curve is also the demand curve since the average revenue is equal to price per unit of output sold. Hence, industry demand curve is the average revenue curve of the firm in a monopoly market.