In the short-run, the monopoly makes_______
ECONOMICS
JAMB 2019
In the short-run, the monopoly makes_______
- A. Normal profit
- B. Abnormal Profit
- C. Loss
- D. Sales
Correct Answer: B. Abnormal Profit
Explanation
Short-run is a period where at least one input is fixed while others are variable. The short-run monopoly sells OM output at MP (OB) price. The total monopoly profits are AP × CA = CAPB is shaded in the diagram. CAPB indicates an abnormal profit of the monopolist
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *