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Separate from the demand curve

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Reference no: EM131061763

In a competitive market, a firm's supply curve dictates the amount it will supply. In a monopoly market thesame is true.

  1. Supply curve conceptually makes sense, but in practice is never used.
  2. Supply curve will have limited predictive capacity.
  3. Decision about how much to supply is impossible to separate from the demand curve it faces.

Reference no: EM131061763

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