Which of the Following Best Explains Why There Is No

question 66

Multiple Choice

Which of the following best explains why there is no meaningful supply curve for a monopolist?

• A)The monopolist is the only supplier.
• B)Price is exogenous to the monopolist.
• C)The monopolist is already maximizing profits; thus, it doesn't need a supply curve.
• D)Price is endogenous. That is, the monopolist determines both quantity and price. Hence, there is no longer a unique association between price and quantity supplied.

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Definitions:

Efficient Equilibrium

A state in which resources are allocated in the most efficient manner, leaving no potential for reallocating resources to make someone better off without making someone else worse off.

Government

A system or group of people governing an organized community, often a state, and set policies, laws, and regulations.

Private Markets

Markets where transactions occur directly between parties without significant regulatory oversight, often avoiding public exchanges.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by anyone and one person’s consumption doesn’t reduce availability to others.