# Monopolist finds it profitable to supply half of the market demand if demand curve is straight line and total cost is zero.Explain this statement

'Monopolist finds it profitable to supply half of the market demand if demand curve is straight line and total cost is zero'

Since, monopolist can charge the price and quantity of supply of the products as per his own preferences, it is assumed in this situation that he finds it more profitable to supply half of the market demand. Also, this condition is said to be valid in this situation only if there exists a straight line demand curve i.e demand and price have a constant relationship for monopolist's product and total cost is zero.

If you still have any doubt in this statement, get back to us by stating it explicitly.

• 1
if possible with diagram
• 0
the question is contradictory total cost van never be zero
• 0
this statement is in textbook (pg 97 para 3) and cost can be zero since there is a case called simple zero cost
• -1
What are you looking for?