Economic Definition of short-run supply curve monopoly. Defined.
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Term short-run supply curve monopoly Definition: Market control means that monopoly does not have a supply relation between the quantity of output produced and the price. In contrast, the short-run supply curve a perfectly competitive is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve. However, because monopoly does not set price equal to marginal revenue, it does NOT equate marginal cost and price. For this reason, a monopoly firm does not respond to price changes by moving along its marginal cost curve. A monopoly does not necessarily supply larger quantities at higher prices or smaller quantities at lower prices.