老师，这道题中well-defined supply function什么意思？

A well-defined supply function is most likely available to:

1. a monopolist.
2. a firm operating in perfect competition.
3. a firm operating in monopolistic competition.

Solution

Solution

B is correct because "In perfect competition, the firm’s supply schedule is represented by the marginal cost schedule." 

A is incorrect because "[a]s in the market structures of monopolistic competition and oligopoly, the monopolist does not have a well-defined supply function that determines the optimal output level and the price to charge."

C is incorrect because "[i]n perfect competition, the firm’s supply schedule is represented by the marginal cost schedule. In monopolistic competition, there is no well-defined supply function."

The Firm and Market Structures Learning Outcome

1. Describe a firms supply function under each market structure