A monopolist's supply of a good is
A) dependent on the monopolist's demand curve and its marginal cost curve.
B) given by the portion of the monopolist's marginal cost curve that lies above the average variable cost curve.
C) independent of the monopolist's demand curve.
D) given by the portion of the monopolist's average variable cost curve that lies above the marginal cost curve.

Question

Quizplus · Accepted Answer

A monopolist's supply is determined by where the marginal cost curve intersects the demand curve, indicating the profit-maximizing quantity. The monopolist adjusts output to equate marginal cost with marginal revenue, which is derived from the demand curve.

A Monopolist's Supply of a Good Is