Question

What can, in general, be said about a monopoly's supply curve?

A monopoly's supply curve, like that for a competitive firm, coincides with its marginal cost curve.

A profit-maximizing monopoly will operate only on the elastic portion of its supply curve.

The monopoly's supply curve is more inelastic than if the firm were competitive.

The concept of a supply curve is meaningless in the context of the monopoly problem.

Answer 1

Option 4

The concept of a supply curve is meaningless in the context of the monopoly problem

A monopoly is the only one firm in the market and produces at MR=MC which is a price maker.

If we assume like a perfect competition the supply curve is MC curve then the production of monopoly do not increase with price a monopoly increases price and decreases output but a perfect competition is a price taker, and as the price increases the firm increases output. It means there is no supply curve for a monopoly it produces as per the elasticities of demand and the power over the price of the monopolist