What can,in general,be said about a monopoly's supply curve?
A) A monopoly's supply curve,like that for a competitive firm,coincides with its marginal cost curve.
B) A profit-maximizing monopoly will operate only on the elastic portion of its supply curve.
C) The monopoly's supply curve is more inelastic than if the firm were competitive.
D) The concept of a supply curve is meaningless in the context of the monopoly problem.

Question

Quizplus · Accepted Answer

In the context of monopoly, the concept of a supply curve is meaningless because the firm has the power to set the price and output level, unlike a competitive firm that has to accept the market price and adjust output accordingly. The monopoly chooses the profit-maximizing price and quantity, and the corresponding output level depends on the demand curve, rather than a supply curve. Therefore, options A, B, and C are incorrect.

What Can,in General,be Said About a Monopoly's Supply Curve