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

Advantages of planned economy, Advantages of Planned System i)   Uses...

Advantages of Planned System i)   Uses of resources :  Central planning can lead to the full use of all the factors of production, so reducing or ending unemployment. ii

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

Gdp growth, Discuss how the nation's present economic situation may affect ...

Discuss how the nation's present economic situation may affect your business in the next year (your market is the entire US economy).  Contain the following in your analysis. a)

Importance of income elasticity, Importance of Income Elasticity If a ...

Importance of Income Elasticity If a country is experiencing economic growth, the income of the people will increase.  However, for those engaged in the production of goods wi

Terms of trade, TERMS OF TRADE The relation between the prices of a co...

TERMS OF TRADE The relation between the prices of a country's exports and the prices of its imports, represented arithmetically by taking the export index as a percentage of t

Environmental issues of managerial economics, Environmental issues of Manag...

Environmental issues of Managerial economics Managerial economics also includes some aspects of macroeconomics. These relate to political and social environment in that anin

Health Economics, Using the relationship among the price of a visit to a ph...

Using the relationship among the price of a visit to a physiotherapist and the quantity of visits demanded, explain and distinguish between the direction, the slope, and the positi

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