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In the short-run, the monopoly makes_______

Economics
JAMB 2019

In the short-run, the monopoly makes_______

  • A. Normal profit
  • B. Abnormal Profit
  • C. Loss
  • D. Sales
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Correct Answer: Option B
Explanation

Short-run is a period where at least one input is fixed while others 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 an abnormal profit of the monopolist.


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WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709