A monopolist is a price:

Question

BlackTom AI · Accepted Answer

The question asks about a monopolist being a price-related descriptor and what that implies about curves in economic theory.
Option A states: 'setter, and therefore has no demand curve.' This is inaccurate because a monopolist still faces the market demand curve; the demand curve is about how quantity demanded responds to price, not about who sets the price. A monopolist influences price but cannot ignore the downward-sloping demand typical for the product.
Option B states: 'setter, and therefore has no supply curve.' This captures a standard result in microeconomics: a monopolist determines the price (price setter) rather than taking price as given, so there isn’t a well-defined supply schedule that maps price to quantity supplied as in perfect competition. In other words, the supply curve concept is tied to exogenous prices and competitive markets, whereas a monopolist’s pricing decision breaks that link.
Option C states: 'setter, and therefore has no variable-cost curve.' Costs are a separate concept from pricing strategy. A monopolist still incurs variable costs; the existence of a pricing power does not eliminate variable costs from the cost structure.
Option D states: 'setter, and therefore has no indifference curve.' Indifference curves are a tool in consumer theory to show preferences, not a concept governing a monopolist’s pricing power. It misapplies a consumer-side construct to a firm-side decision.
Thus, each incorrect option either confuses demand with supply, confuses cost with pricing power, or misapplies consumer theory to a firm, while the correct statement aligns with the idea that a price-setting firm does not have a conventional supply curve in the same way a price-taker firm does.

A monopolist is a price:Single choice

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