why do monopolies, in contrast with purely competitive firms, not have a supply curve?
why do monopolies, in contrast with purely competitive firms, not have a supply curve?
Homework Answers
Answer -
The monopoly firm unlike the competitive firm is a price maker and not the price taker. The monopoly does not derive its supply independently but the supply depends upon the demand curve thus we do not talk about the supply curve of the monopoly market but in perfect competition it is a price taker and hence has both, the demand curve and the supply curve.
The demand for the product and the price of the product determine the supply of the monopoly.
It does not have the supply curve of its own.
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why do monopolies, in contrast with purely competitive
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#15
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