Answer to Question #222096 in Microeconomics for GIRMA HAILU

Question #222096

Do monopoly firms get a normal profit or supernormal profit in the short run? Explain how? 


1
Expert's answer
2021-08-03T09:01:51-0400

A monopoly firm can earn a supernormal profit in the short run because the seller has control over the prices to be fixed of the product and the entry new firm is also restricted.


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