The supply curve of a firm in a competitive market is the average variable cost curve above the minimum of marginal cost

A monopoly, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopoly decrease its price if it wants to increase its output?

What will be an ideal response?

When an effective production quota is applied in thee market for rice, the quantity produced _____ and the price ____. When an effective production quota is applied in the market for rice, the MSB ____ MSC.

Fill in the blank(s) with the appropriate word(s).