Revenue is the same as profit. Do you agree with this statement? Justify your answer.

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: Should the Marginal revenue exceed the marginal cost? Why?

A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…

Q: How to calculate the Marginal cost and the Revenue of producing 1, 2,...15

A: Marginal cost can be defined as the change in total cost when one more unit of extra output is…

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: What is the relationship between revenue cost and profit?

A:

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: What is the cost revenue? Explain with example?

A: Cost revenue is the total expenditure of producing and delivering a product or service to customers.…

Q: Can the marginal revenue be negative??? True/False

A: Marginal revenue refers to the amount of additional revenue thay a producer gets when he produces…

Q: If marginal profit is negative what information can you infer about marginal cost and marginal…

A: Marginal profit is given as :- Marginal profit = Marginal revenue - Marginal cost It's given that…

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: If you are a manager in a highly competitive business such where should you put your most effort to…

A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…

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: Define the term cost of revenue?

A: Revenue is defined as the amount of money or income generated by a firm for a given period of time.…

Q: Critically analyze the shut-down rule of market.

A: The markets refer to the place where the buyers of the goods, services, and various other products…

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: Explain why optimal profits should occur when marginal cost equals marginal revenue.

A: MC or marginal cost is the addition to the total cost (TC) when an extra unit of output is produced.…

Q: Why would a firm that incur choose to produce rather than to shut down?

A: When the revenue from the sale of the goods or services produced is insufficient to pay the variable…

Q: A manager makes the statement that output should be expanded as long as average revenue exceeds…

A: Average revenue: Total revenue per unit of output = Price/OutputAverage cost: Total cost / output =…

Q: Economic profit is

A: To find : What is economic profit

Q: What incentive compensation needed by employees to remain competitive within the industry?

A: The reward in the form of cash paid to employees for the service that they provide is defined as…

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: Normal profit diagrams

A: The Normal Profit can be defined as the one in which the firm earns enough revenue to cover it's…

Q: Economic profit

A: There are two types of profit: Accounting Profit Economic Profit

Q: ilustrate and example of economic profit with numbers

A: Economic profit is the profit one gets after taking into account the implicit and explicit costs,…

Q: When we know that the firms are earning just normal profits.

A: To find : When do firm earn normal profit.

Q: "More Sales, More Profits”. Do you agree? Explain your answer

A: Introduction:   Yes i agree to the statement that more sales bring more profits in most of 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 the given Marginal revenue be negative ?  True or false

A: According to the given question It is the amount of the marginal revenue which usually whatever will…

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: 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: What is Product Expansion?

A: Product Expansion -It is the expansion of economic activity as well as the production levels from…

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: A price taking firm has zero fixed cost and increasing marginal cost. What quantity does it produce?…

A: A price-taking firm is such a firm that accepts the market price. A market price is a price that is…

Q: Explain profit ?

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

Q: Match the words from the list below to complete the following statement A firm will maximise by…

A: Marginal cost refers to the total costs which arise when the the quantity produced increases by one…

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: 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: 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…