The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Why is there a supply point and not a supply curve for a monopolist?
A)A monopolist cannot affect the market price by changing its supply.
B)A monopolist produces a homogeneous product having similar substitutes.
C)A monopolist equates the price which it charges with its marginal cost.
D)There is only one quantity and price at which a monopolist operates.
E)A monopolist supplies to a large number of consumers.

Question

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4
 
-Why is there a supply point and not a supply curve for a monopolist?
A)A monopolist cannot affect the market price by changing its supply. 
B)A monopolist produces a homogeneous product having similar substitutes. 
C)A monopolist equates the price which it charges with its marginal cost. 
D)There is only one quantity and price at which a monopolist operates. 
E)A monopolist supplies to a large number of consumers.

Quizplus · Accepted Answer

A monopolist operates at a single quantity and price point where marginal revenue equals marginal cost. Therefore, there is no supply curve, only a supply point.

The Table Given Below Shows the Price, Marginal Revenue and Marginal