Which statement best describes a monopolist
A)A monopolist is a price maker, and therefore it has an upward sloping supply curve.
B)A monopolist is a price maker, and therefore it has no demand curve.
C)A monopolist is a price setter, and therefore it has no supply curve.
D)A monopolist is a price setter, and therefore it has no demand curve.

Question

Quizplus · Accepted Answer

A monopolist is a price setter because it has significant control over the market price due to lack of competition. It does not have a supply curve because its output decision is based on marginal cost and marginal revenue, not on a supply curve as in competitive markets.

Which Statement Best Describes a Monopolist