WAEC - Economics (2011 - No. 21)
In which of the following markets does a firm have power to make super normal profits both in the short run and long run?
Monopoly
Duopoly
Oligopoly
Monopsony
Explanation
If a firm makes more than normal profit it is called super-normal profit.
The monopoly is able to make supernormal profits in the short run and long run because the price (AR) is greater than AC.