Equilibrium Condition
Equilibrium Condition
Equilibrium Condition for Monopoly Firm : A monopolist firm has equilibrium at the point where two following conditions are fulfilled:
1. Marginal revenue
2. MC should cut MR from below.
="Marginal cost Equilibrium of Monopolist in Short Period :
In short run, a monopolist may face three conditions:
1. Abnormal profit,
2. Normal profit ie no profit and no loss,
3. Firm in loss.
LAbnormal Profit:
Abnormal profit in monopolist is that condition in which average revenue is greater than average cost ie, AR>AC
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