The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that monopolies
A)don't have a supply curve.
B)have shifting demand curves.
C)have the same supply curve as perfectly competitive firms.
D)are subject to market failure.

Question

Quizplus · Accepted Answer

Monopolies don't have a supply curve in the traditional sense because their output decisions are based on the intersection of marginal cost (MC) and marginal revenue (MR), rather than on market price. This unique decision-making process differentiates them from perfectly competitive firms, which respond directly to market prices.

The Fact That a Monopoly Has to Take the Shapes