Which of the following statements is true of a monopolist's supply curve?
A) The supply curve is vertical.
B) The supply curve is upward-sloping.
C) The supply curve is downward-sloping.
D) A monopolist does not have a supply curve.

Question

Quizplus · Accepted Answer

A monopolist does not have a supply curve in the traditional sense because the quantity supplied is determined by the monopolist's decision on where to produce along its demand curve, rather than by a market price. The concept of a supply curve, which shows the quantity supplied at different prices, assumes competitive conditions that do not apply to a monopoly.

Which of the Following Statements Is True of a Monopolist's