A monopolist is a price:
A)setter, and therefore has no indifference curve
B)setter, and therefore has no variable-cost curve
C)setter, and therefore has no supply curve
D)setter, and therefore has no demand curve

Question

Quizplus · Accepted Answer

A monopolist is a price setter, but it still has a demand curve as it needs to consider the level of demand for its product when setting the price. However, it does not have a supply curve as it has control over the quantity supplied and can adjust it according to its profit-maximizing behavior. The variable-cost curve is also not relevant for a monopolist as they do not have to consider the cost of variable inputs when setting the price.

A Monopolist Is a Price