Question

Explain price and output determination for a monopoly in short as well as in long run?​

Answer 1

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• ᴛʜᴇ ᴇǫᴜɪʟɪʙʀɪᴜᴍ ʟᴇᴠᴇʟ ɪɴ ᴍᴏɴᴏᴘᴏʟʏ ɪs ᴛʜᴀᴛ ʟᴇᴠᴇʟ ᴏғ ᴏᴜᴛᴘᴜᴛ ɪɴ ᴡʜɪᴄʜ ᴍᴀʀɢɪɴᴀʟ ʀᴇᴠᴇɴᴜᴇ ᴇǫᴜᴀʟs ᴍᴀʀɢɪɴᴀʟ ᴄᴏsᴛ. ᴛʜᴇ ᴘʀᴏᴅᴜᴄᴇʀ ᴡɪʟʟ ᴄᴏɴᴛɪɴᴜᴇ ᴘʀᴏᴅᴜᴄᴇʀ ᴀs ʟᴏɴɢ ᴀs ᴍᴀʀɢɪɴᴀʟ ʀᴇᴠᴇɴᴜᴇ ᴇxᴄᴇᴇᴅs ᴛʜᴇ ᴍᴀʀɢɪɴᴀʟ ᴄᴏsᴛ. ɪɴ ᴛʜᴇ sʜᴏʀᴛ ʀᴜɴ, ᴛʜᴇ ᴍᴏɴᴏᴘᴏʟɪsᴛ ʜᴀs ᴛᴏ ᴋᴇᴇᴘ ᴀɴ ᴇʏᴇ ᴏɴ ᴛʜᴇ ᴠᴀʀɪᴀʙʟᴇ ᴄᴏsᴛ, ᴏᴛʜᴇʀᴡɪsᴇ ʜᴇ ᴡɪʟʟ sᴛᴏᴘ ᴘʀᴏᴅᴜᴄɪɴɢ.

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Answer 2

☆Answer:

Ques: Explain price and output determination for a monopoly in short as well as in long run?

Answer:

• The equilibrium level in monopoly is that level of output in which marginal revenue equals marginal cost.
• The producer will continue producer as long as marginal revenue exceeds the marginal cost.
• In the short run, the monopolist has to keep an eye on the variable cost, otherwise he will stop producing.

I hope this will be help you.