Question

The monopolist has no supply curve because the quantity supplied at any particular price depends on the monopolist's demand curve. there is a single seller in the market. the monopolist's marginal cost curve changes considerably over time. the relationship between price and quantity depends on both marginal cost and average cost. although there is only a single seller at the current price, it is impossible to know how many sellers would be in the market at higher prices.

Answer 1

Answer:

The correct answer is option A.

Explanation:

In a monopoly market, the firm is price maker. The firm decides the price it will charge. There is no unique relation between the price charged by the monopolist. The monopoly firm decides it quantity and price at the same time.

The monopolist faces a downward sloping demand curve, which means more is demanded at lower price. The quantity supplied by the monopoly firm at different price levels depends on the elasticity of the demand curve.