Question

Explain the equilibrium of a monopoly firm.

Answer 1

The condition for equilibrium in a monopoly market is the same as in other markets: MC=MR.

The equilibrium price and output is determined at a point where the short-run marginal cost (SMC) equals marginal revenue (MR).

Since costs differ in the short-run, a firm with lower unit costs will be earning only normal profits.

$<b>$$<marquee>$Mark Brainliest Please...