Question

1.A monopolist faces such profit(s) in the long run.

A.Abnormal,Normal and subnormal profits.

B.Abnormal and normal profits.

C.Abnormal and subnormal profits.

D.Abnormal profits.

2.A monopolist faces such profit(s) in the short run.

A.Abnormal,Normal and subnormal profits.

B.Abnormal and normal profits.

C.Abnormal and subnormal profits

D.Abnormal profits.

Answer 1

The monopolist can earn the abnormal profit in the long run as well as a short run because it has control over the prices of products and there is an entry barrier for the new firms.

1) The correct answer is D) Abnormal profits.

2) The correct answer is D) Abnormal profits.