Question

What is the long-run equilibrium market price and quantity in a monopoly?

Answer 1

Refer explanation section

Explanation:

A Monopoly firm is in equilibrium by equating its Long run Marginal (LMC) Cost with Marginal Revenue (MR). In the graph, it is established at point E . Monopoly output is OM. Monopoly price is MQ or OP. PQRS is the abnormal profit. Since it is a Monopoly firm, this abnormal profit is available in the long run also.