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Monopoly Impacts and Government Interventions

If the firms ...

Question

If the firms are earning supernormal profits, how will the number of firms in the industry change?

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Solution

If the firms are earning supernormal profits, the number of firms in the industry will tend to increase leading to change? profits in the long-run.

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Q. A competitive firm cannot earn supernormal profit in the long run because __________.

Q. A monopoly firm can earn supernormal profit both in the short-run and long-run, because __________.

Q. When ________ we know that the firms are earning just normal profits.

Q. According to the passage, today’s successful firms, unlike successful firms in the past, may earn the greatest profits by:

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