Long run equilibrium of a firm under monopoly, Managerial Economics

Assignment Help:

Long run Equilibrium of a Firm under Monopoly

In the long run, firm has the time to adjust his plant size or to employ existing plant so as to maximise profit. Long run equilibrium of the monopolist is displayed in figure.

2090_Long run Equilibrium of a Firm under Monopoly.png

Figure: Long run equilibrium of a firm under monopoly

Monopolist is in equilibrium at OL output where LMC cuts MR curve. He would charge OP price as well as earn an abnormal profit equal to TPQH.


Related Discussions:- Long run equilibrium of a firm under monopoly

Average revenue (ar), Average Revenue (AR) This is the revenue per uni...

Average Revenue (AR) This is the revenue per unit of the commodity sold.  It is obtained by dividing Total Revenue by total quantity sold.  For a firm in a perfectly competiti

National income accounting, NATIONAL INCOME ACCOUNTING This refers to ...

NATIONAL INCOME ACCOUNTING This refers to the measuring of the total flow of output (goods and services) and of the total flow of inputs (factors of production) that pass thro

Explain the laws of returns to scale, Laws of returns to scale alludes to t...

Laws of returns to scale alludes to the long-run analysis of the laws of production. In the long run, output can be increased by varying all factors. So in this section we study th

Equilibrium in a two commodity market, Equilibrium in a two commodity marke...

Equilibrium in a two commodity market Let us consider a two-commodity market model in which the two commodities are related to each other.  Let us assume the functions for bot

Production function with one variable input, explain production function il...

explain production function illustrate production with one variable input

A budget deficit that is only temporary, "A budget deficit that is only tem...

"A budget deficit that is only temporary cannot be the source of inflation."  Is this statement true, false, or uncertain?  Describe your answer.

Production planning in demand forecast period, Q. Production Planning in de...

Q. Production Planning in demand forecast period ? Long term production planning can assist the management in organising long term finances on practical terms and conditions. S

Derive from production and consumption, (a) Define and explain, using dia...

(a) Define and explain, using diagrams, consumers' surplus; producers' surplus and total surplus that a society can derive from production and consumption of a good at a particu

discuss opportunity cost-explicit and implicit costs, Discuss and analyz...

Discuss and analyze following statement: When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Rec

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd