In the short-run, the monopoly makes_______
- Normal profit
-
Abnormal Profit
- Loss
- Sales
The correct answer is: B
Explanation
Short-run is a period where at least one input is fixed while others are variable.
The short-run monopoly sells OM output at MP (OB) price. The total monopoly profits are AP × CA = CAPB is shaded in the diagram.
CAPB indicates an abnormal profit of the monopolist.