The monopolist's supply curve ?
Correct answer: A. does not exist
- A. does not exist
- B. is the marginal cost curve above average variable cost?
- C. is the marginal cost curve above average total cost
- D. is the upward-sloping portion of the average total cost curve
- E. The upward-sloping portion of the average variable cost
Explanation
A monopolist has no unique supply curve because its output depends on both marginal revenue and marginal cost, and marginal revenue changes with demand. The marginal-cost-above-AVC rule is the supply curve for a competitive firm, not a monopolist.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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