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When was Supernormal created?

Updated: 8/21/2019
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10y ago

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Supernormal was created on 2007-09-01.

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What is the position of supernormal profits for a firm that is a monopoly?

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Supernormal profit of monopolistic competition?

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Using the aid of a diagram how can a perfectly competitive firm make supernormal profit in a shortrun?

It makes "supernormal profit" (aka. economic profit), by having the price exceed Average Cost. Remember that PRICE is also Average revenue AND demand. So that being said, P=AR=D. Because, if they are receiving more money than it cost them to make the product, it is profitable. It is also important to keep in mind that it is impossible for a perfectly competitive firm to make "supernormal profits" in the long run. It can only be done in the short run. That is a very basic explanation of it, as I did not even mention accounting profit. However, that should be enough info. Here's the diagram you'll want to follow: http://wpcontent.answers.com/wikipedia/en/thumb/9/90/Perfect_competition_in_the_short_run.PNG/300px-Perfect_competition_in_the_short_run.PNG


Explain how a monopolist can earn supernormal profits in the long run?

in the long run, they dont spend a penny. and they take everybody money, and then they spend it on girls, and then they spend it on ps3, and then they take the tax payers money. all happy yay.