In response to increase demand, monopolist "restrict the output and let price rise."
- A market structure defined by a single vendor offering a market-exclusive product. The seller has no competition in a monopoly market since he is the single vendor of products with no close replacement.
- Because the monopolist is facing a downward sloping market demand curve, the price the monopolist can obtain for each new unit of output must reduce as the monopolist raises its output. When a result, as the monopolist raises its output, its marginal revenue will decrease.
- A monopoly occurs when a single provider controls all of a product's supply. This results in a stiff demand curve. That is, regardless of how high (or cheap) the product's price goes, demand remains pretty consistent. To keep prices high, supply might be limited.
Thus the correct option is C.
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