A monopolist's supply curve
A)is the upward-sloping portion of its marginal cost curve
B)is the portion of its marginal cost curve above AVC
C)is parallel to its long run ATC curve
D)does not exist because quantity supplied depends on the market demand curve
E)is derived from the average variable cost curve

Question

Quizplus · Accepted Answer

A monopolist does not have a supply curve because it is a price maker, not a price taker. The quantity it supplies depends on the market demand curve and its marginal cost, not on a supply curve.

A Monopolist's Supply Curve