Answer to Question #126401 in Economics for Faith

Question

explain with a aid of a graph the short run equilibruim position of a firm operating in the monopolisitc competitive market structure

Answer 1

P-price: Q-quantity: MC-marginal cost: AC-average cost:Dsr-demand in short run: Psr-price in short run: MRsr-marginal revenue in short run: ACsr-average cost in short run

in the short run a monopolist can have income or loss, because monopolist does not adapt. Whether he receives income or loss depends on changes in demand. The graph shows situation when monopolist has profit.