The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-As a perfectly competitive firm produces at the point where price equals marginal cost, it has no supply curve, only a supply point.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-As a perfectly competitive firm produces at the point where price equals marginal cost, it has no supply curve, only a supply point.

Quizplus · Accepted Answer

A perfectly competitive firm's supply curve is represented by its marginal cost curve above the average variable cost, as it will adjust its output so that price equals marginal cost for various prices.

The Figure Given Below Shows the Cost and Revenue Curves