In the short-run, the monopoly makes_______
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Correct Answer: Option B
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 Abnormal profit of the monopolist.
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 Abnormal profit of the monopolist.