In the short-run, the monopoly makes?

A. Normal profit
B. Abnormal Profit
C. Loss
D. Sales

Correct Answer: Option B

B. Abnormal Profit

Explanation

Short-run is a period where some factors are fixed and some 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 the Abnormal profit of the monopolist.

Copyright warnings! Do not copy.