New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under Monopoly the supply curve is absent

    because?
    A There is limited entry and exit Correct Answer Incorrect Answer
    B They always make profit no matter what the quantity is Correct Answer Incorrect Answer
    C The monopolist controls the supply Correct Answer Incorrect Answer
    D The equilibrium is achieved by equating marginal revenue to marginal cost. Correct Answer Incorrect Answer

    Solution

    The monopoly maximises its profit at the point where MR = MC. There is no supply curve under monopoly because, there is no unique price-quantity relationship, since quantity supplied by a firm under monopoly is not determined by price but in­stead by. marginal revenue, given the marginal cost curve

    Practice Next