question archive The supply curve for a monopolist is given by: a

The supply curve for a monopolist is given by: a

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The supply curve for a monopolist is given by:

a. The firm's marginal cost curve above the average variable cost curve,

b. The one point on the demand curve that corresponds to the quantity for which price is equal to marginal cost,

c. The one point on the demand curve that corresponds to the quantity for which marginal revenue equals marginal cost,

d. The entire demand curve above the point where the price is equal to average cost.

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c. the one point on the demand curve that corresponds to the quantity for which marginal revenue equals marginal cost.

There is no unique supply curve for a monopoly firm owing to the fact that the monopolist is a price maker and he himself fixes the price of the commodity depending on demand conditions. As in a monopoly, firms are not price takers, they chose the combination of price and quantity that maximizes profit between all the available combinations on the demand curve. There will be no specific curve for a monopoly. Thus, the supply curve for a monopoly is given by the one point on the demand curve that corresponds to the quantity for which marginal revenue equals marginal cost.