Bob owns a trout farm with monopoly power in North Carolina.Bob's optimal output occurs where marginal revenue _ marginal cost.Because of monopoly power,Bob's supply curve _.

A) equals;does not exist
B) exceeds;does not exist
C) equals;is upward sloping
D) exceeds;is perfectly inelastic

Question

Bob owns a trout farm with monopoly power in North Carolina.Bob's optimal output occurs where marginal revenue _____ marginal cost.Because of monopoly power,Bob's supply curve _____.

A) equals;does not exist
B) exceeds;does not exist
C) equals;is upward sloping
D) exceeds;is perfectly inelastic

Gavin Tereszcuk · Accepted Answer

Final Answer : A, Explanation :  In a monopoly, the optimal output level is where marginal revenue equals marginal cost. Monopolies do not have a supply curve in the traditional sense because their output decision is based on the demand curve they face, not on a supply curve.

Bob owns a trout farm with monopoly power in North Carolina.Bob's optimal output occurs where marginal revenue _ marginal cost.Because of monopoly power,Bob's supply curve _.

A) equals;does not exist
B) exceeds;does not exist
C) equals;is upward sloping
D) exceeds;is perfectly inelastic

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Learning Objectives

Related questions

Bob owns a trout farm with monopoly power in North Carolina.Bob's optimal output occurs where marginal revenue _____ marginal cost.Because of monopoly power,Bob's supply curve _____.A) equals;does not existB) exceeds;does not existC) equals;is upward slopingD) exceeds;is perfectly inelastic

Definitions

Learning Objectives

Learning Objectives

Related questions

Bob owns a trout farm with monopoly power in North Carolina.Bob's optimal output occurs where marginal revenue _ marginal cost.Because of monopoly power,Bob's supply curve _.

A) equals;does not exist
B) exceeds;does not exist
C) equals;is upward sloping
D) exceeds;is perfectly inelastic