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.
300 Level Research Methods In Education Practice exam questions and detailed answers. Download the answers in…
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300 Level Research Methods In Education Practice exam questions and detailed answers. Download the answers in…
300 Level Research Methods In Education Practice exam questions and detailed answers. Download the answers in…