Question

Short run price output determination by monopolist
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Answer 1

Explanation:

Short run price output determination by monopolist .

Answer 2

In the short run the monopolist can either maximise profits or minimise losses.

• The monopolist behaves appropriately like every other corporation in the short term as they can not vary all their key factors of economic production.
• By typically generating the economic output for which marginal cost (MC) equals marginal revenue (MR), a monopolist can maximise benefit or can mitigate potential losses.
• The complex relationship between premium price and average overall cost depends on whether a potential profit or potential loss is made or not.