Assume someone organizes all farms in the nation into a monopoly.What is the monopoly's marginal cost curve?
A) It is a horizontal line at the competitive industry's price.
B) It is a vertical line at the formerly competitive industry's quantity.
C) It is a vertical line at the monopoly's chosen output level.
D) It is the formerly competitive industry's supply curve.
E) It is the same as the formally competitive industry's average total cost curve.

Question

Quizplus · Accepted Answer

The marginal cost curve for a monopoly that has organized all farms in the nation would be the same as the supply curve of the formerly competitive industry. This is because the marginal cost curve represents the cost of producing an additional unit of output, which, in a competitive market, aligns with the supply curve.

Assume Someone Organizes All Farms in the Nation into a Monopoly.What