Many people dream of owning a football team or baseball team. Would you expect the return on these assets to be relatively high, low, or about the same as the average industry? A) high B) low C) It depends on the team. D) about the same as average industry

Many people dream of owning a football team or baseball team. Would you expect the return on these assets to be relatively high, low, or about the same as the average industry? A) high B) low C) It depends on the team. D) about the same as average industry

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 3E

See similar textbooks

Related questions

Q: Company is artificial legal person. How does it achieve the status of artificial legal personality…

A: Economics is a subject that was developed in order to allocate scarce resources in an efficient…

Q: Examine the pharmaceutical industry using the theory and models of market structure. Should…

A: The following is discussed as follows:

Q: Which of the following is true of profits and losses? Profits direct entrepreneurs toward production…

A: Profit: The profit is the excess of the revenues over expenditure at the given period of time…

Q: Given that the price in a competitive industry is 100 the firm's total equation is given as…

A: Answer - Need to find- Determine the firm's total stock revenue,the profit equation, the quantity…

Q: Financial value of the firm increases when the firm generates economic returns, in the context of…

A: The value that in turn determines the well-being and health of a firm during the long run depicts…

Q: Danielle decides to withdraw her savings of $70,000 and invest in starting her own clothing…

A: Accounting profit is a company's net income, which is revenue minus expenses. Economic profit is…

Q: iv. Examine the effects of ABC Inc. Ltd on consumers.

A: ABC inc is software product named as automatic based cost system.Because of this system the cost of…

Q: ACME corporation currently has a 20% market share in a $15 billion industry (measured by sales…

A: Market share is a measure that specifies the percentage of the market which is earned by a specific…

Q: Alamo Car Rentals In the early 1990s, Alamo was the most profitable (as a percentage of sales) and…

A: Pricing is defined as the money that the sellers can charge for the good or service that it provides…

Q: There are 22 Research & Promotion Boards authorized by Congress, enacted by commodity industries.…

A: The research and promotion boards are set up for various protien based foods like beef, poultry,…

Q: !

A: Every sector requires companies to spend money in order to make money. Employee salary, merchandise,…

Q: Choose two of barriers to entry that would affect the market in which any business operates. Explain…

A: The obstructions or barriers that make it much more difficult for new businesses to enter a specific…

Q: Adidas is one of the high-class sports shoe dealers in Melbourne with the following short run cost…

A: 1. Use 2 characteristics to explain the market structure for Adidas Sports Shoe Company. Answer:…

Q: esla share price is $439.18; Netflix share price is $480.68; and Amazon share price is 3148.24.…

A: Tesla's share price is $439.18 Netflix share price is $480.68 Amazon's share price is 3148.24.

Q: Pedro is planning a campaign that involves using social media to build his company's brand equity.…

A: 4 A Pedro is planning a campaigning that involves a social media, in order to build a brand equity,…

Q: The elimination principle is the idea that profits are eliminated by firms exiting the industry and…

A: The elimination principle is the idea that profits are eliminated by firms exiting the industry and…

Q: Looking at family business, integrate the knowledge you learn to analyze TWO challenges that the…

A: We are supposed to do the 1 question at a time please send the other question for answers.…

Q: Singapore Power (SP) is the only operator in the domestic electricity market in Singapore.…

A: Since the Singapore Power (SP) is a single operator in the domestic market of electricity of…

Q: Describe two competitive companies with similar gross profit figures that ended up with dramatically…

A: After all direct costs are covered, all that is left is the company's gross profit. After all,…

Q: Newmont Mining, the world’s largest producer of gold, has a problem. An Australian gold mining…

A: We talk about how to deal with bad work performance. Managing an employee's performance is…

Q: Which of the following is true only of a firm in a perfect competition market structure? Question…

A: The market is the collection of buyers and sellers. It is the system in which buyers and sellers…

Q: Consider the concepts of accounting profit and economic profit. Suppose you are a consultant and…

A: Profit is the surplus value that is generated in a process of production, which usually accrues to…

Q: The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential…

A: To get the economic profit, it is important to ascertain the total cost, that is the explicit and…

Q: If two construction companies merge, this is called a ________ merger, whereas if a bakery merges…

A: When two companies in same industry merge, it is called horizontal merger. Whereas if two business…

Q: How may incumbent firms benefit from advertising and product proliferation to reduce competition and…

A: Competition: When there are several enterprises in a market, competition between them arises. The…

Q: Klee Motors is a small car leadership. On average, it sells a car for $24 000, which it purchases…

A: It is given that the firm has a few fixed costs such as the rent which is equal to 60,000 per month,…

Q: If the California state government imposes heavy taxes 'and' more costly regulations on a business…

A: As per the law of supply, price has a direct relationship with quantity supplied.

Q: Help please. Can you give me at least 5 Short-term strategies, 5 Intermediate-term strategies, and 5…

A: IKEA company: IKEA is a Swedish global organization that was established in 1943 by 17-year-old…

Q: Question 7 According to the Boston Consulting Group approach, provides a measure of market…

A: The Group of Boston Consulting product portfolio matrix is being designed in order to help with…

Q: Identify the type of market structure macdonald falls into stating reasons explaining such…

A: There are four types of market structure, 1) Perfect competition where a large number of sellers…

Q: If most firms in an industry are earning a 7 percent rate of return on their assets, but your…

A: The economic profit is the difference between revenue and total cost. Here total cost includes…

Q: 1) Identify five recent economic, social, political, or technological trends that significantly…

A: We will be taking the example of McDonald's in the economy of Bangladesh.

Q: There are some reason for acquisitions, they are-Increased market power,overcoming entry barriers.…

A: For businesses, mergers are a way to extend their reach and expand into new segments, or gain market…

Q: Which of the following is NOT an expected outcome for a firm in a market where sellers have market…

A: Economic profit=(P-ATC) *Q

Q: Suppose the discount rate is 8%, the expected growth rate of the firms profit is 5%, and the firm is…

A: Given; Discount rate= 8% Expected growth rate of the firms profit= 5% Current profit= $40000

Q: Managers of firms with market power should be cautious not to ________ when they are earning…

A: In a market with less competition, firms enjoy some market power as they can have a specific…

Q: ACME corporation currently has a 20% market share in a $15 billion industry (measured by sales…

A: Market share is the percentage of total sales generated by a firm in an industry. It can be…

Q: Q8 The theory of the firm is based on the following two key assumptions. a. Firms seek to…

A: One single major assumption of a firm is profit maximization. Profit includes both revenue and…

Q: According to the theory of the firm, ceteris paribus, the value of the firm decreases with a…

A: Total Cost: Total cost refers to the cost that encompasses the fixed cost and the variable cost.…

Q: Analyse how the S-C-P approach predicts performance (welfare) based on market structure and explain…

A: The S-C-P method predicts performance depending on market structure by analyzing businesses'…

Q: What costs and revenues do economists include when calculating profit that accountants don’t…

A: Economic profit is the excess revenue made by the firm after deducting the total cost incurred…

Q: Discuss why in many liability firms, the managers do not receive a fixed payment for their work, but…

A: Payment is the sum of money given in return for the purchase or completion of goods or services.…

Q: How do firms that compete in four different markets structures determine profitability

A: Four different markets structures:- Perfect competition monopoly monopolistic competition Oligopoly…

Question

Pick one

Many people dream of owning a football team or baseball team. Would you expect the return on these assets to be relatively high, low, or about the same as the average industry?

A) high

B) low

C) It depends on the team.

D) about the same as average industry

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Market shares of mat makers are in the table below. Firm Market Share (Percent) Made-to-last, Inc 20 Big Wheel, Inc 17 Magic Carpet, Inc 22 Supreme, Inc 17 Copra, Inc 24 What is the structure of the industry?
True/ False Perfect competition produce a homogeneous product which have a good knowledge among the buyers and sellers.
Please answer all 4. Financial value of the firm increases when the firm generates economic returns, in the context of its desired social engagement, in excess of its __________. Group of answer choices a. Fixed costs b. Cost of capital c. Variable costs d. Opportunity costs 5. David was having a heated argument with Sue that the business should consider more than shareholders when making it business decisions. David was reflecting Group of answer choices a. Profit maximization b. Stakeholder theory c. The learning curve d. Microeconomics equilibrium 6. In the short run, a firm’s decision to shut down should not take into consideration Group of answer choices a. Fixed costs b. Marginal costs c. Variable costs d. Avoidable costs 7. According to the “Shared Value” article by Porter and Kramer, which of the following is NOT a key principle in developing a shared value approach within a firm? Group of answer choices a. Enabling local cluster…
ABC company had decreasing returns to scale at all levels of output and it is divided up into 2 equal- size smaller firms, what would happen to its overall profits? Discuss.
The salmon fishery on Vancouver Island has historically been one of the world’s richest. Over the past few years, poor returns of salmon to the island and competition from farm-raised salmon have reduced the profit realized by the fishermen. One response to lower revenues has been for fishermen to use family members instead of hiring crew “in order to reduce their costs.” What do you think about this business strategy? Will employing relatives really keep profits from falling? Under what conditions will this a good strategy?
The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $40,000 Annual lease on building = $25,000 Annual revenue from operations rations= $420,000 Payments to workers= $150,000 Utilities (electricity ,water, disposal al) costs= $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business =$6,000 Creamy Crisp's economic profit is?
Confused on how to solve the graph and the blanks First blank: suffer economic losses or earn economic profits Second blank: Shift leftward or remain unchanged or shift rightward Third blank: A high-cost industry An increasing-cost industry A low-cost industry Or a decreasing-cost industry
Many large corporations, such as General Motors and Apple, operate in markets that are not even close to perfectly competitive. But unlike the products these companies sell, shares of these firms’ common stock are bought and sold in what could be described as a perfectly competitive market. Based on the three conditions that make a market perfectly competitive, what characteristics of the purchase and sale of shares of stock of a large company like GM or Apple, are consistent with perfect competition?
Increased competition is good for incentivizing innovation. Explain the arguments for and against this statement.
Explain the shape of the SR supply curve of a perfectly competitive firm with adiagram. Is the stock market an example of perfect competition? Why or why not?
Describe two competitive companies with similar gross profit figures that ended up with dramatically different net operating income. Provide details of the two companies and include both qualitative and quantitative results to support your response.