Short-run equilibrium, Managerial Economics

Assignment Help:

SHORT-RUN EQUILIBRIUM

All firms are assumed to aim at maximizing profits or minimizing losses.  The monopolist controls his output or price, but not both.

The monopoly maximizes profits where: MR = MC (the necessary condition of profit maximisation)

1216_short run equilibrium.png

He cannot produce at less than Qo because MR will be greater than MC.  The monopolist will determine his output at Q Xo and set the price at Po and his total Revenue is OQo X OPo and the to total cost will be OCo X bQo and abnormal profits Po CO AB


Related Discussions:- Short-run equilibrium

Substitution effect on law of demand, Substitution Effect on law of demand ...

Substitution Effect on law of demand When price of a commodity falls it becomes comparatively cheaper if price of all other related goods, particularly of substitutes, remain c

Managerial Economics helps create utility for the Society. , Managerial Eco...

Managerial Economics helps create utility for the Society.

Determinants of consumption function, Other Determinants 1.          R...

Other Determinants 1.          Rate of Interest Is contained in the argument of the classified economists who argued that rational consumers will save more and consume les

Interest and the keynesian liquidity preference theory, Interest and the Ke...

Interest and the Keynesian Liquidity Preference Theory Interest is a factor income in that it is considered to be payment to or return on capital in the sense that it is payme

Managerial economics according to mote and paul, Managerial economics accor...

Managerial economics according to Mote and Paul "Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm's decision-making

Low fidelity prototyping technique, You have recently gained employment wit...

You have recently gained employment with a computer consultancy company. Due to your specialist knowledge in the areas of Human Factors and usability, your manager considers that y

Theory of demand, when the data is descrete and incremental changes is meas...

when the data is descrete and incremental changes is measurable, what is it?

Price elasticity of demand, For some time, two firms have charged $0.90 per...

For some time, two firms have charged $0.90 per standard unit of crating materials for shipping a particular type of machine tool and each has been selling about 20,000 units per m

Mixed economy, The Mixed Economy There are no economies in the world w...

The Mixed Economy There are no economies in the world which are entirely 'market' or planned, all will contain elements of both systems. The degree of mix in any one econom

Brief note, principles of time perspectives

principles of time perspectives

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