A monopolist has no supply curve because
A)as demand changes, each output level can be consistent with more than one profit-maximizing price
B)monopolists tend to restrict output
C)monopolists have no marginal cost curve
D)monopolists can charge any price they want
E)as demand changes, the firm's profit-maximizing choice of output may change

Question

Quizplus · Accepted Answer

A monopolist's supply curve does not exist because, unlike in perfect competition, the monopolist's output decision is not solely based on price. Instead, it depends on the demand curve, meaning that for each level of output, there can be multiple profit-maximizing prices as demand changes.

A Monopolist Has No Supply Curve Because