GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In case of monopoly, a firm in the long run can have
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Loss
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Profit
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Break even
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All of these
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Explanation:
Detailed explanation-1: -In the long-run, a monopolist can vary all the inputs. Therefore, to determine the equilibrium of the firm, we need only two cost curves – the AC and the MC.
Detailed explanation-2: -The monopolist in the long-run can take advantage of its monopoly power and earn super normal profit by producing less than optimum level of output and charging higher prices.
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