Atlantic Economic Journal, Vol. 18, No. 4, pp. 32-37
6 Pages Posted: 29 Dec 2009 Last revised: 3 Aug 2010
Date Written: December 1, 1990
We show here that the usual textbook declaration that there is no such thing as a "supply curve" for a monopoly can be confusing for students and is at least somewhat misleading. The perfect competition case corresponds to a "one-parameter" demand curve facing the firm; varying that parameter results in the predictable firm behavior we call the supply curve. But, varying any one parameter of a multiple parameter demand curve facing the monopoly firm (e.g. varying either the constant or the slope parameter of a linear demand curve) is shown to also result in predictable behavior that could well be referred to as a monopoly supply curve.
Keywords: Monopoly, Supply, Monopoly supply
JEL Classification: D41, D42, D21, A22, A23
Suggested Citation: Suggested Citation