If the demand for a monopoly's output shifts leftward, the change in quantity produced is NOT predictable because the monopoly
A)is a profit maximizer.
B)is a price taker.
C)has no supply curve.
D)has a marginal cost curve that might not be upward sloping.

Question

Quizplus · Accepted Answer

Monopolies do not have a supply curve because they do not set their quantity based on a given price like a competitive firm would. Instead, monopolies have market power and can set their price and quantity to maximize profit. Therefore, a leftward shift in demand does not necessarily lead to a predictable change in quantity produced because it depends on the monopoly's profit-maximizing strategy.

If the Demand for a Monopoly's Output Shifts Leftward, the Change