Compare perfect competition and monopoly with respect to derivation of supply curve - Economics - Non-Competitive Markets

Question

Compare perfect competition and monopoly with respect to derivation
of supply curve

Vanita Rana · Accepted Answer

Basis of Comparison
Perfect Competition
Monopoly

Supply curve
Perfect competitive firm has supply
curve

If P ≥ minimum
of SAVC, then supply curve is the upward rising
portion of firm’s SMC curve above the minimum point of
SAVC
If P <
minimum of SAVC, the supply curve is the vertical portion of the
price axis till the price line

No supply curve as there is no unique quantity
supplied at a given price level Also, as monopolist is the only
seller in the market (i e price maker), so he decides the units of
output to be sold on his own irrespective of the market
demand

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Basis of Comparison	Perfect Competition	Monopoly
Supply curve	Perfect competitive firm has supply curve. If P ≥ minimum of SAVC, then supply curve is the upward rising portion of firm’s SMC curve above the minimum point of SAVC If P < minimum of SAVC, the supply curve is the vertical portion of the price axis till the price line.	No supply curve as there is no unique quantity supplied at a given price level. Also, as monopolist is the only seller in the market (i.e. price maker), so he decides the units of output to be sold on his own irrespective of the market demand.