SR and LR eq under imperfect competition

What type of profit does a firm under monopoly or monopolistic competition earn in the short run when Marginal Revenue (MR) equals Marginal Cost (SMC) and Average Revenue (AR) is greater than Average Cost (SAC)?

•  A) Abnormal Profit

    

    

      

• B) Normal Profit

• C) Loss

• D) Variable Profit

In the short-run equilibrium of a monopoly or monopolistic competition, if Marginal Cost (MC) and Marginal Revenue (MR) are equal at point E, what does it signify?

  

• A) The firm is earning normal profit

•    B) The firm is incurring losses

• C) The firm is maximizing profit

•   

     D) The firm is operating at minimum cost

    

What is the condition for a firm to earn normal profit in the short-run equilibrium under monopoly or monopolistic competition?

•    A) SMC = MR and AR > SAC

• B) SMC = MR and P/AR = SAC

•   

     C) SMC = MR and AR < SAC

•    D) SMC > MR and AR > SAC

    

 In the short-run equilibrium of a monopoly or monopolistic competition, if Average Revenue (AR) is less than Average Cost (SAC), what type of situation does the firm experience?

•    A) Abnormal Profit

•    B) Normal Profit

•    C) Break-even

    

•    D) Loss

 At the short-run equilibrium of a firm under monopoly or monopolistic competition, what does the shaded region LJKN represent if AR < SAC?

  

•    A) Loss

• B) Abnormal Profit

•    C) Normal Profit

•    D) Variable Cost

    

In the short-run equilibrium of a firm under monopoly or monopolistic competition, what does the equilibrium point E signify when MC and MR are equal?

•    A) Maximum revenue

•    B) Maximum cost

•    C) Break-even point

    

•    D) Profit maximization

If a firm's Marginal Cost (MC) and Marginal Revenue (MR) are equal at equilibrium in the short run, what is the relationship between Price (P) and Average Revenue (AR)?

•    A) P > AR

•    B) P = AR

•    C) P < AR

•    D) P varies unpredictably

    

What condition must be met for a firm to earn abnormal profit in the short-run equilibrium under monopoly or monopolistic competition?

•    A) SMC = MR and AR > SAC

•    B) SMC = MR and P/AR = SAC

•    C) SMC = MR and AR < SAC

•    D) SMC > MR and AR > SAC

    

In the long run, what type of profit does a monopoly typically earn?

•    A) Abnormal Profit

•    B) Normal Profit

•    C) Loss

•    D) Variable Profit

    

What are the equilibrium conditions for a monopoly in the long run?

•    A) Marginal Cost (MC) equals Marginal Revenue (MR) and Average Revenue (AR) is greater than or equal to Long-Run Average Cost (LAC)

•    B) Marginal Cost (MC) equals Marginal Revenue (MR) and Average Revenue (AR) is less than Long-Run Average Cost (LAC)

•    C) Marginal Cost (MC) equals Marginal Revenue (MR) and Average Revenue (AR) equals Long-Run Average Cost (LAC)

•    D) Marginal Cost (MC) is greater than Marginal Revenue (MR) and Average Revenue (AR) is greater than Long-Run Average Cost (LAC)