Final answer:
A monopolist does not have a traditional supply function, as its quantity produced directly affects market price due to the downward-sloping market demand curve it faces. Instead, the monopolist intertwines supply decisions with pricing strategy to maximize profits.
Step-by-step explanation:
The statement that a monopolist has a supply function that indicates the quantity the monopolist wants to produce for every possible market price is false. Unlike a perfectly competitive firm that perceives the demand curve as flat and acts as a price taker, a monopolist faces a downward-sloping market demand curve. This means that the quantity of goods the monopolist decides to produce directly affects the market price.A monopolist determines the profit-maximizing quantity and price by analyzing where its marginal revenue equals marginal cost. If it were to produce additional units beyond this point, the extra supply would lower the market price and decrease marginal revenue. Therefore, unlike in perfect competition, a monopolist does not have a supply function in the traditional sense; instead, its supply decision is intertwined with the pricing strategy, considering the entire market demand.