In the short-run, the monopoly makes_______

  • A Normal profit
  • B Abnormal Profit
  • C Loss
  • D Sales
jamb 2019economics

The correct answer is B. Abnormal Profit

Short-run is a period where at least one input is fixed while others are variable.

The short-run monopoly sells OM output at MP (OB) price. The total monopoly profits are AP × CA = CAPB is shaded in the diagram.

CAPB indicates an abnormal profit of the monopolist.

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