The supply curve for the monopolist
A)does not exist
B)is represented by the marginal cost curve above the average total cost curve
C)is represented by the marginal cost curve above the average variable cost curve
D)is represented by the marginal cost curve above the average cost curve

Question

Quizplus · Accepted Answer

The supply curve for a monopolist does not exist in the traditional sense because a monopolist does not respond to market price changes in the same way that firms in competitive markets do. Instead, a monopolist sets its output level based on where marginal cost meets marginal revenue to maximize profit, without a supply curve that relates price to quantity supplied.

The Supply Curve for the Monopolist