Identify the true statement from the following list.
A)a monopoly firm is a price taker and has no supply curve
B)a monopoly firm has an downward-sloping supply curve and is a price maker
C)a monopoly firm has an upward-sloping supply curve and is a price taker
D)a monopoly firm has no supply curve and is a price maker

Question

Quizplus · Accepted Answer

A monopoly firm is a price maker because it has significant control over the price due to the lack of competition. It does not have a supply curve in the traditional sense because its output decision is based on maximizing profit, which involves considering both the demand curve and its cost structure, rather than simply responding to market price.

Identify the True Statement from the Following List