In the short-run, the monopoly makes_______

Assessment: JAMB UTME - Economics - 2019 Subject: Economics

Question 1 Report

In the short-run, the monopoly makes_______
Answer Details
In the short-run, a monopoly can make abnormal profit. Abnormal profit is a profit that is higher than the normal profit a company would make in a competitive market. This is because a monopoly has market power, meaning it has control over the price of its product and can set it higher than the market price, leading to higher profits. However, it's important to note that this situation is only temporary and in the long-run, competition and other factors can drive down prices and eliminate the abnormal profit.
Read lesson note on The Theory Of Supply (JAMB)
Read lesson note on The Theory Of Price Determination (JAMB)
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