The supply curve for a monopoly is
A)the portion of the marginal cost curve that lies above the average variable cost curve.
B)the portion of the marginal cost curve that lies above the average total cost curve.
C)the portion of the marginal cost curve that lies above the average fixed cost curve.
D)not clearly defined.

Question

Quizplus · Accepted Answer

Monopolies do not have a supply curve in the traditional sense because their output decisions are based on maximizing profits, taking into account both their cost structures and their ability to influence prices, rather than responding to market prices in the way that firms in perfectly competitive markets do.

The Supply Curve for a Monopoly Is