A monopolist does not have a supply curve because:
A)price and quantity are determined by marginal cost and demand.
B)a monopoly firm's marginal cost of production is constant.
C)supply is determined by average total cost and not price.
D)firms in monopoly markets are price takers.

Question

Quizplus · Accepted Answer

A monopolist does not have a supply curve because it does not set production based on a given price as in a competitive market. Instead, it sets the price based on the marginal cost and the demand. Therefore, the quantity produced is determined by the demand and the firm's marginal cost, not a specific supply curve.

A Monopolist Does Not Have a Supply Curve Because