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 does not respond to changes in price. Therefore, the quantity produced is not predictable when demand shifts rightward. The other options (A, B, and D) are not relevant to the unpredictability of quantity produced in response to a demand shift.

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