Monopolistic firms do not have supply curves because

Question

Quizplus · Accepted Answer

Monopolists have the power to choose their price-quantity combination along the demand curve because they are the sole producers in the market. Their output is not a fixed quantity, but rather a decision based on their profit-maximizing behavior, which takes into account the elasticity of demand and their marginal costs. Therefore, they do not have a distinct supply curve like perfectly competitive firms do.

Monopolistic Firms Do Not Have Supply Curves Because