The supply curve of a pure monopolist
A)is that portion of its marginal cost curve that lies above average variable cost.
B)is the same as that of a purely competitive industry.
C)is its average variable cost curve.
D)does not exist because prices are not "given" to a monopolist.

Question

Quizplus · Accepted Answer

The supply curve does not exist for a pure monopolist because, unlike in perfect competition, a monopolist does not take the market price as given and then decide how much to produce. Instead, a monopolist sets the price based on its desired quantity to maximize profit, meaning the concept of a supply curve, which depends on a given price, is not applicable.

The Supply Curve of a Pure Monopolist