Monopoly In Economics With monopoly Demand And Supply (Part A/2)

Monopoly In Economics: There is no unique supply curve for the monopolist derived from his MC.One point should be stressed here. The MC curve is not the supply curve of the monopolist, as is the case in pure competition. 
In monopoly there is no unique relation­ship between price and the quantity supplied. Now re-examine the statement that there is no unique supply curve for the monopolist derived from his MC.
Given his MC, the same quantity may be offered at different prices depending on the price elasticity of demand. Graphically this is shown in figure 6.3 The quantity X will be sold at price P, if demand is D, while the same quantity X will be sold at price P₂ if demand is D₂. Thus there is no unique relationship between price and quantity.Monopoly In Economics

Similarly, given the MC of the monopolist, various quantities may be supplied at any one price, depending on the market demand and the corresponding MR curve. In figure 6.4 we depict such a situation. The cost conditions are represented by the MC curve. Given the costs of the monopolist, he would supply OX₁ if the market demand is D₁, while at the same price, P, he would supply only OX2, if the market demand is D₂.

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