Explain how short-run economic profits become long-run economic costs. When profits fall to zero, are owners worse off? Why or why not?

Q: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. How can you…

A: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. The…

Q: The application of the marginal cost pricing principal in a decreasing cost industy would lead…

A: According to the given question The cost principle basically determines the practice of setting the…

Q: Describe the four steps taken to obtain a unit profit?

A: Profit: Profit is the portion of total revenue that remains after deducting the total cost. Below is…

Q: What are the assumptions of perfect competition?  What are the prospects for profitability in the…

A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…

Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?

A: Given that the market structure is monopolistic competition, the profit maximizing condition is  MC=…

Q: Description   Given the following graph, please label the curves where asked and answer the…

A: Here ,we have to find profit - maximizing level of output.

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: The costs of production include both the fixed costs as well as the variable costs. The fixed costs…

Q: When are you are you expecting companies to produce in the short run? A. costs equal equal revenue…

A: A firm tends to earn positive profits when its  earned revenues can cover its total costs.

Q: Which formula represents the profits for a firm? (check all that apply) (AC=average cost,…

A: Total cost is the overall cost incurred in the course of production of the good.

Q: Marginal profits can never be zero True/False

A: # The term marginal means additional And marginal profit means the extra profit earned with the sale…

Q: What are three short-run outcomes in the perfect competition?

A: In the short-run, the perfect competitive firms, can have three outcomes.

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: Marginal revenue must exceed marginal cost.Explain why?

A: Total revenue is the total receipts collected from the sale of goods or services in the market. The…

Q: ABC company had decreasing returns to scale at all levels of output and it is divided up into 2…

A: The measure that depicts the change in output of industry or firm which results from a proportionate…

Q: The flat-screen plasma TVs are selling extremely well. The originators of this technology are…

A: Innovation theory of profit: - it is a theory of profit given by Schumpeter according to which the…

Q: Family Mart like inner city grocery stores, sometimes exist even though they do not earn economic…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Does the firm can also earn zero profit or even loss where MC=MR?   a. maybe   b. yes   c. sometimes…

A: Firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost,…

Q: Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not…

A: “Mom and Pop firms” is a small independent business entity where the ownership and operations are…

Q: What is meant by normal profit?

A: The total revenue earned by a firm operating in a market is the sum of payments received from the…

Q: Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they…

A: Firms will shut down when their cost exceed revenue and they cannot continue to compete in the…

Q: Price = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic…

A: Given: Price = $20, Quantity = 400 units, Unit cost = $15, Implicit costs $ = 4,000 To find: econom

Q: When will a business shut-down in the short-run?

A: Short-run: - it is a short time period in which some factors of production are variable and some are…

Q: Calculate economic and accounting profit, and explain the importanceof the difference.

A: Profits are the excess of the revenue receipts over the firm’s total spending incurred during a…

Q: on in sh

A: Perfect competition is a market structure which leads to the Pareto-efficient allocation of…

Q: A cashew (a type of nut) farmer, named Ted, generated a large economic profit this year from a great…

A: Economic Profit is calculated by deducting total cost from total revenue.  Firms usually earn…

Q: what are the inefficiencies of an imperfect competition ? what are the benefits of having a…

A: Imperfect competition is that market structure which does not include  Perfect competition. It…

Q: Explain market conditions in the long run

A: In the long run, perfectly competitive marketplaces look different than they do in the short run.…

Q: In order to maximize the profit, what decision do you think is the most important one?

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which 'Economies of Scale' creates imperfect competition and Why?

A: Economies of scale refers to a situation where there is fall in per unit output of average cost with…

Q: explains why in perfect competition, there are no economic profits or losses in the long run?

A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…

Q: In perfect competition, if the marginal cost increases which way does the curve shift? what are some…

A: Perfect competition is one of the market structures out of 4 types of market structures in an…

Q: Mike Wazovsky runs a business that produces marmalade in small jars. He is proud of his business…

A: ATC (Average Total Cost)  Average total cost refers to the cost of production per unit of output.…

Q: Can you give examples of companies with perfect competition?

A: The markets refer to the place where the buyers, and sellers interact. In the markets, the sellers…

Q: Discuss where does the shutdown being and why? What does the company has to do to get back to…

A: The answer is given below

Q: To compute Economic Profits, which costs are used? Illustrate

A: The term ‘Economic Profit’ of a firm or an organization refers to the difference between the revenue…

Q: 1. When the business produce products at break-even point, it is said to be A. A loss for the…

A: Business: A business is characterized as an association or ambitious element occupied with business,…

Q: Explain why a company would shut down in the short run.

A: The shut down point is the point at which a firm decides to seize its operations in the short run…

Q: Explain profit ?

A: The average sales price multiplied by the number of units sold equals revenue. Net income is…

Q: A firms total profit equals?

A: The amount of money a company makes by selling its goods or services at a specific price is revenue.…

Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?

A: Answer - In the long run where the every input can vary and as in the long run where firms can make…

Q: Explain  the block chain technology in agricultural and give examples

A: The economies around the globe are involved in various types of economic and financial activities,…

Q: the assumptions of perfect competition?

A: To find : Assumption of perfect competition.

Q: Suppose the price of eggs plummeted to $1.25 a dozen? What would Farmer Johnson's profit (or loss)…

A: We have to calculate at price p = $1.25,  what is the loss or profit of the farmer.

Q: What does perfect competition mean and what are the concepts of it?

A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…