explain why a monopolist does not have a well defined supply curve??
Answer (1)
1st May, 2020
Hello Arsh,
A monopoly firm has no well-defined supply curve because of the fact that output decision of a monopolist not only depends on marginal cost but also on the shape of the demand curve.
As a result, shifts in demand do not trace out a series of prices and quantities as happens with a competitive supply curve.
Hope it clears your doubt.
Thank you!
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