Which of the following statements is correct?
A)The monopolist's supply curve is its MC curve.
B)The monopolist's supply curve is that section of its MC curve that lies above its AVC curve.
C)The monopolist's supply curve is that section of its MC curve that lies above its MR curve.
D)The monopolist does not have a supply curve.

Question

Quizplus · Accepted Answer

Monopolists do not have a supply curve in the traditional sense because their output decision is based on the intersection of the marginal cost (MC) and marginal revenue (MR) curves, rather than on a supply curve responding directly to market prices.

Which of the Following Statements Is Correct