(4) The Long Run Equilibrium Situation in Monopoly
Monopoly, Long Run, Economic Profits, Allocative Inefficiency
This describes the Long Run Equilibrium for Monopoly. It explains why the adjustment process described for Perfect Competition does not apply, and so that outcome is not obtained.
Crane, Steven E., "(4) The Long Run Equilibrium Situation in Monopoly" (2011). Principles of Microeconomics. Paper 50.
Ability to explain why the competitive adjustment process does not occur in Monopoly. Ability to explain why the Long Run Equilibrium is different from that of Perfect Competition
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