With a fixed market demand curve, the monopolist supply curve is _____

Marketing Jan 11, 2021

With a fixed market demand curve, the monopolist supply curve is _____.

A. horizontal

B. vertical

C. one point only

D. upward sloping

Expert Solution

With a fixed market demand curve, the monopolist supply curve is C. one point only .

The one point is the price-quantity combination at which the marginal revenue (MR) balances the marginal cost (MC). With the fixed demand curve, there is no incentive to change the price and supply, and hence the monopolist supply curve would be one point only.

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