Question

A monopolist A. does not have a supply curve because the monopolist sets its price at the same time it chooses the quantity to supply. B. has a supply curve that is upward-sloping, just like a competitive firm. C. does not have a supply curve because marginal revenue exceeds the price it charges for its products. D. has a horizontal supply curve, just like a competitive firm.

Answer 1

Option A

A monopolist does not have a supply curve because the monopolist sets its price at the same time it chooses the quantity to supply.

Explanation:

A monopolist is an self, association, or organization that regulates all of the markets for a distinct good or service. A monopoly firm has no outlined supply curve. Below monopoly, there is no so one-to-one accord among price and quantity provided.

A monopoly firm is a cost inventor, not a cost taker. This is because yield decision of a monopolist not only depends on marginal cost but also on the shape of the demand curve. As a result, variations in demand do not sketch out a range of prices and quantities as appears with a competitive supply curve.