SHORT-RUN SUPPLY CURVE, MONOPOLY: Market control by a monopoly firm means that it does not have a supply relation between the quantity of output produced and the price. By way of comparison a perfectly competitive firm does have a short-run supply curve. Market control by a monopoly means that it price is NOT equal to marginal revenue, and thus it does NOT equate marginal cost and price. As such, a monopoly firm does not move along it's marginal cost curve. A monopoly does not necessarily supply larger quantities at higher prices or smaller quantities at lower prices. See also | short run | supply curve | monopoly | perfect competition | marginal cost curve | average variable cost curve | profit maximization | price | marginal cost | marginal revenue | law of supply | market control | short-run supply curve, monopolistic competition |
