Question

Explain in 250 words that why a monopoly does not have a well defined supply curve.

Answer 1

Answer:

A monopoly firm has no well-defined supply curve. ... This is 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.”