Short-run equilibrium, Managerial Economics

SHORT-RUN EQUILIBRIUM

All firms are assumed to aim at maximizing profits or minimizing losses.  The monopolist controls his output or price, but not both.

The monopoly maximizes profits where: MR = MC (the necessary condition of profit maximisation)

1216_short run equilibrium.png

He cannot produce at less than Qo because MR will be greater than MC.  The monopolist will determine his output at Q Xo and set the price at Po and his total Revenue is OQo X OPo and the to total cost will be OCo X bQo and abnormal profits Po CO AB

Posted Date: 11/28/2012 5:18:41 AM | Location : United States







Related Discussions:- Short-run equilibrium, Assignment Help, Ask Question on Short-run equilibrium, Get Answer, Expert's Help, Short-run equilibrium Discussions

Write discussion on Short-run equilibrium
Your posts are moderated
Related Questions
Time domain: Time domain is a term which is used to define the analysis of mathematical functions or physical signals, with respect to time. In the time domain, signal or function

what are the Sources of public debt

WHY MANAGERS NEED TO KNOW ECONOMICS The influence of economics towards the performance of managerial duties and responsibilities is of major importance. The importance and cont

Explain in brief the relationship between TR,AR and MR under perfect market condition.

“Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Explain the statement with suitable example.


Explain cost output relationship with reference to: a.    Total fixed cost and output b.    Total variable cost  and output

Elasticity of Demand As the law of demand establishes a relationship between quantity demanded and price for a product, it doesn't tell us exactly as how weak or strong the rel

Describe the Forecasting method in managerial economics It is a technique or a method to predict many future aspects of a business or any other operation. For illustration, a r

Why we need to distinguish between private cost and social cost?