What is the relationship between a monopolist's demand curve and the market demand curve? What is the relationship between a monopolist's demand curve and its marginal revenue curve? Explain.

A monopolist demand curve is the same as the market demand curve. For monopolists, the market demand curve is the same as its average revenue curve. Average revenue for a monopolist is the price per unit because a monopolist captures the entire market at a given level of output. The monopolist must decrease the price if he wants to capture more buyers and sell more goods and vice versa.

A monopolist marginal revenue is downward sloping as the price with every additional unit of output must fall. A monopolist marginal revenue curve has twice the slope of the monopolist demand curve due to the inverse relationship between price and output in the monopolist market.