Answer to Question #60372 in Microeconomics for Bob

Question

If the factor supply curve facing a monopolist is the market supply curve, and if the market supply curve is an upward sloping straight line, the marginal expenditure curve

a. lies below the market supply curve.
b. lies above the market supply curve.
c. is the market supply curve.
d. crosses the market supply curve at the market wage rate.
e. Either A or B is possible.

Answer 1

If the factor supply curve facing a monopolist is the market supply curve, and if the market supply curve is an upward sloping straight line, the marginal expenditure curve is the part of the market supply curve after the intersection with the average variable cost curve.
So, the correst answer is c. is the market supply curve.