A monopolist's supply curve is the portion of its marginal cost curve that lies below its average variable cost curve.

Question

Quizplus · Accepted Answer

A monopolist does not have a supply curve in the traditional sense because its output decision is based on the intersection of marginal cost and marginal revenue, not on price. The statement incorrectly describes the relationship between a monopolist's cost curves and its supply decision.

A Monopolist's Supply Curve Is the Portion of Its Marginal