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Why is there no market supply curve under conditions of

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1. A monopolist is producing at a point at which marginal cost exceeds marginal revenue. How should it adjust its output to increase profit?

2. We write the percentage markup of price over marginal cost as (P - MC)/P. For a profit-maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?

3. Why is there no market supply curve under conditions of monopoly?

4. Why might a firm have monopoly power even if it is not the only producer in the market?

Reference no: EM13321687

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