GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under monopoly the supply curve is absent because
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There is no entry for others
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The monopolist always makes profit
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The monopolist controls the supply
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Equilibrium involves MC = MR and MC<P
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Explanation:
Detailed explanation-1: -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.
Detailed explanation-2: -The conditions for Equilibrium in Monopoly are the same as those under perfect competition. The marginal cost (MC) is equal to the marginal revenue (MR) and the MC curve cuts the MR curve from below.
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