If the demand for a monopoly's output shifts rightward,the change in quantity produced is NOT predictable because
A) the monopoly is a profit maximizer.
B) the monopoly is a price taker.
C) the monopoly has no supply curve.
D) the monopoly's marginal cost curve might not be upward sloping.

Question

Quizplus · Accepted Answer

A monopoly does not have a supply curve because it can choose to produce any quantity at the given market price. As such, the change in quantity produced cannot be directly predicted based on the demand shift. However, the monopoly will still aim to maximize profits by producing at the quantity where marginal revenue equals marginal cost, which may be affected by the shape of its marginal cost curve (including whether it is upward sloping).

If the Demand for a Monopoly's Output Shifts Rightward,the Change