Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The short run equilibrium of monopolist is displayed below in figure.
Figure: Abnormal Profit under Monopoly
AR is the average revenue curve, MR is marginal revenue curve, AC is average cost curve and MC is marginal cost curve. Up to OQ, level of output marginal revenue is greater than marginal cost though beyond OQ the marginal revenue is less than marginal cost.
So the monopolist would be in equilibrium where MC=MR. So a monopolist is in equilibrium at OQ level of output and at OP price. He earns abnormal profit equal to PRST. Though, it isn't always possible for a monopolist to earn super normal profits. If cost and demand situations aren't favourable, monopolist may incur short run losses.
Figure: Loss under Monopoly
Though monopolist is a price maker, because of high costs andweak demand, he suffers a loss equal to PABC as displayed above in figure.
A monopolist faces a straight line demand curve which passes through the point Rs 10 per ton on the price-cost axis and through the point 8000 tons on the quantity axis. The fir
What are terms included in oligopoly? Oligopoly includes: • The meaning of oligopoly, and why it arises • Collusion • Game theory, particularly the concept of the pris
Determine the concept of Law of demand We have considered numerous factors which fashion the demand for a commodity. As explained the first and most important factor which determ
You have been provided with daily data starting in January 2009 on the main New Zealand stock market index, the NSX-50. Choose a suitable model for measuring volatility on the New
Q. Explain Maximising revenue method? In a number of cases, a firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of productio
PROBLEMS OF USING PER CAPITA INCOME TO COMPARE STANDARD OF LIVING OVER TIME 1) The composition of output may change. e.g. more defence-related goods may be produced and
Use a computer regression package, to work these two computer exercises. 2. Ozark Bottled Water Products, Inc. hired a marketing consulting firm to perform a test marketing of its
define equi marginal principle
(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
What is the theory of the firm A firm can be considered an amalgamation of people, financial and physical resources and a variety of information. Firms exist as they perform us
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd