Question
Asked Nov 14, 2019
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Show how to derive a monopolist's supply curve

 

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Expert Answer

Step 1

A market situation where there is only one seller of a commodity having no close substitutes is called monopoly.

Step 2

The figure (1) below depicts the market structure of a monopolist.

 

Monopoly Market
MC
В
P
A
DD
MR
Output
Figure (1)
Price
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Monopoly Market MC В P A DD MR Output Figure (1) Price

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Step 3

MR and MC represents the marginal revenue curve and marginal cost curve respectively.

For profit maximization, a monopolist produces at a point where marginal revenue is equal to marginal...

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