The supply curve for a monopoly and for a perfectly competitive industry are virtually identical.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, the supply curve is determined by the marginal cost curves of the individual firms above their average variable cost. In contrast, a monopoly does not have a supply curve in the traditional sense because its output decision is based on maximizing profit by equating marginal revenue with marginal cost, without the presence of competition.

The Supply Curve for a Monopoly and for a Perfectly