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the fact that a monopoly has to take the shapes of marginal cost and marginal revenue into account when making decisions is reflected in the fact that question 30 options: a) monopolies are subject to market failure. b) monopolies have shifting demand curves. c) monopolies don't have a supply curve. d) monopolies have the same supply curve as perfectly competitive firms.

Respuesta :

For monopolies, marginal price curves are upward sloping and marginal revenues are downward sloping.

The marginal income curve for the monopoly company lies beneath its demand curve. It indicates the extra income received from promoting an additional unit.

What is the normal shape of a marginal income curve for a monopolist Why?

The usual shape of a marginal income curve for a monopolist is downward sloping as the addition of each additional unit will enlarge the output which will reduce the charge of the output. The inverse relation between the charge of a output and its quantity shows the downward sloping nature of the curve.

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