A supply curve
A supply curve provides the ratio of costs to the quantity provided for each price. It is usually sloping upwards, i.e. it has a fantastic connection with product costs.
Monopoly and the supply curve
The company can determine the charge for selling its products in the case of a monopoly. The monopoly maximized revenue for the factor MR = MC (Clower, 2014). There is no monopoly supply curve because, since the amount provided by an under-monopoly firm is not determined by the rate, but instead, due to the marginal cost curve, it can use marginal revenues instead (Glenn, 2015). In a monopolistic market, there are instances in which changes in a call for curves do not produce an alternate in each fee and amount (Antonny, 2015). Exchange the variables in this Demonstration for looking that with a change in call a for a curve, a monopolist can both produce the equal amount, however, price a particular fee or fee the same rate, however, provide an accurate number. Therefore, there is no one-to-one relationship between number and rate—a monopolistic marketplace has no supply curve. You can mouse over a curve to become aware of it (Clower, 2015).
Conclusion
The monopolist determines its profit-maximizing price and then components a quantity of goods that permits it to acquire that price. Accordingly, there is no supply curve. The energy employer in a given area and professional sports groups are examples of monopolies. Due to the capability to extract excess make the most of a market, monopolies are unwanted. The absence of supply curve in monopoly is as result of a lack of linear relationship between demand and supply.
References
Clower, R. W. (2014). Some theory of an ignorant monopolist. The Economic Journal, 69(276), 705-716.
Glenn Hubbard, R and Anthony Patrick. (2015). Principles of economics Textbook: Essentials of Economics 4th Edition, O’Brien Pearson.
