The monopolist’s output decision depends not only on marginal cost, but also on the demand curve. Shifts in demand do not trace out a series of prices and quantities that we can identify as the supply curve for the firm. Instead, shifts in demand lead to changes in price, output. there is no one-to-one correspondence between the price and the seller’s quantity; therefore,a monopolized market lacks a supply curve.
The monopolist’s output decision depends not only on marginal cost, but also on the demand curve. Shifts in demand do not trace out a series of prices and quantities that we can identify as the supply curve for the firm. Instead, shifts in demand lead to changes in price, output, or both.
Thus there is no one-to-one correspondence between the price and the seller’s quantity; therefore, a monopolized market lacks a supply curve.
The monopolist’s output decision depends not only on marginal cost, but also on the demand curve. Shifts in demand do not trace out a series of prices and quantities that we can identify as the supply curve for the firm. Instead, shifts in demand lead to changes in price, output. there is no one-to-one correspondence between the price and the seller’s quantity; therefore,a monopolized market lacks a supply curve.
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ReplyDeleteThe monopolist’s output decision depends not only on marginal cost, but also on the demand curve. Shifts in demand do not trace out a series of prices and quantities that we can identify as the supply curve for the firm. Instead, shifts in demand lead to changes in price, output, or both.
Thus there is
no one-to-one correspondence between the price and the seller’s quantity; therefore, a monopolized market lacks a supply curve.