The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that
A) monopolies don't have a supply curve.
B) monopolies don't have a demand curve.
C) monopolies have the same supply curve as perfectly competitive firms.
D) monopolies maximize profit.

Question

Quizplus · Accepted Answer

Monopolies don't have a supply curve because their output decision depends on both marginal cost and marginal revenue, unlike perfectly competitive firms that have a supply curve based solely on marginal cost.

The Fact That a Monopoly Has to Take the Shapes