CUET Preparation Today
From the revenue and cost curves of a monopolist above, firm will earn normal profits at which of following outputs? i. q2 ii. q1 iii. q0 iv. q3 |
ii, iii i, iv i, ii i, iii |
i, iv |
Normal profits mean no profit and no loss. This happens when total revenue is equal to total cost. This happens at two output levels in the above diagram. They are – q2 and q3. |
