Q: Explain various markets and how they work to your friend so your friend will be able to run the…
A: Mainly there are 4 types of market structures. These are: Perfect Competition(PC) is the structure…
Q: Explain how short-run economic profits become long-run economic costs. When profits fall to zero,…
A: A stopwatch or a calendar cannot correctly identify the boundary between the short and long runs. It…
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: Do firms really equate their marginal cost with marginal revenue?
A: Answer
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: Why do economists believe that economic profit is the more accurate measure of a business success?…
A: Accounting profit only considers the cost that has actually happened, but economic profit considers…
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: An accountant and an economist are looking at a firm’s records and market situation. The accountant…
A: The money spent to purchase the factors of production to purchase the goods is termed as the cost of…
Q: When would a seller possibly decide to exit the industry over the long run? What should product…
A:
Q: Why would a profitable for-profit organization choose to exit a line of business
A: A for-profit firm or organization is described as an entity that mainly generates profit more than…
Q: In the short run, what quantity does Lite and Kool produce, what price does it charge, and does it…
A: Monopolistic competition refers to a market structure in which many firms sell differentiated…
Q: What is the difference between Economic Profit and Accounting profit?
A: Explicit Cost is the cost paid to factors of production that are hired from outsiders. Implicit Cost…
Q: Draw the cost-volume-profit diagram?
A: The cost-volume-profit analysis implies the relationship between costs and volume, selling price,…
Q: a) Distinguish between a perfect competition market and a monopoly market in an economy?
A: In economics, there exists mainly four kinds of market structure and these market structures are…
Q: what tools and techniques are available to improve a firm's profits?
A: There are many tools and techniques available which is used by the firm to improve profit.Following…
Q: What is profit
A: Profit = Revenue - costs
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: How do you define 'profit
A: The main objective of the firm in whether competitive or imperfect competition market is Profit…
Q: Economic profit is
A: To find : What is economic profit
Q: A firm under perfect competition is
A: To find : What is firm under perfect competition.
Q: If you're a manager in a highly competitive business such where should you put your most effort to…
A: As a manager ,the primary responsibility is to look in the profits of the business. Business can be…
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: 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: What is Economic profit
A: Economic profit refers to the profit that obtained by deducting the implicit cost or opportunity…
Q: Why economic profit is negat
A: Profit: It refers to the revenue earned by the companies. With more profit earned by the companies,…
Q: Economic profit
A: There are two types of profit: Accounting Profit Economic Profit
Q: Describe the methods that can be used to to determine where profit is maximized?
A: A firm in short run and long run chooses to maximize its profits. Output levels of the firm are…
Q: What is the firms profit or loss?
A: Since the marginal revenue of the firm is above the average total cost and the marginal cost the…
Q: What is profit maximizing output?
A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…
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: 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: What is the difference between economic profit and accounting profit?
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: What is the firms profit or loss?
A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…
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: How do you calculate marginal cost and marginal revenue?
A: Marginal revenue: Marginal revenue refers to the additional revenue that made by selling of one…
Q: Define a perfect competition market structure?
A: Market structure defines the features of a market in which the buyers and sellers interact to sell…
Q: What is the meaning of economic profit. Support your answer by example?
A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be…
Q: Explain what so special about perfect competition
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Explain the dynamic theory of profit.
A: J.B. Clark proposed Clark's Dynamic Theory of Profit, which stated that profits develop in a dynamic…
Q: How does a change in the response rate affect profit?
A: A response rate refers to a rate that shows the number of people or participants who have responded…
Q: the assumptions of perfect competition?
A: To find : Assumption of perfect competition.
Q: Revenue is the same as profit. Do you agree with this statement? Justify your answer.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Why is it reasonable to think of normal profit as a type of cost to the firm?
A: In the short run, firms usually try to temporarily shut down their operations when the prices are…
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