Illustrate the short-run and long-run equilibrium under the monopoly market

      

Illustrate the short-run and long-run equilibrium under the monopoly market

  

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Wilfred
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LONG RUN EQUILIBRIUM UNDER MONOPOLY
In a pure monopoly, entrance into the market by potential competitor is not possible. Thus whether or not a monopolist earns a pure profit in the short run, no other producer can enter the market in the hope of sharing whatever pure profit exits. Therefore, pure economic or supernormal profit is not eliminated in the long run as it is in the case of perfect competition.
Wilfykil answered the question on March 7, 2019 at 11:02


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