What is Economic profit

Q: At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic…

A: Lin operates in a perfect market competition where, nor the buyers nor the sellers are the price…

Q: Suppose a farmer in Georgia begins to grow peaches He uses $1,000,000 in savings to purchase land,…

A:

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: The difference between the money collected from the sale of a product and the costs of the inputs…

Q: Use the following graph to answer the next question. MC ATC AVC 1.25 1.05 .90 .80 .65 .60 15 20 35…

A: Given: Market price = $1.25 Output produced at this price = 20 units  ATC corresponding to this…

Q: Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a…

A: In perfectly competitive markets, there are many sellers which produce homogenous good and sells…

Q: The accompanying graph illustrates a perfectly competitive firm's total revenue (TR) curve and total…

A: Answer in step 2.

Q: Briefly explain using a graph whether given statement is true or false. ‘To maximise profit, a firm…

A: The perfectly competitive firm is a price taker and can sell any quantity of commodity at the market…

Q: The following table shows the total revenue and total cost of a firm at the various quantities of…

A: Total cost is the sum of all the costs that a firm incurs for the production of a good. The total…

Q: When does Concave profit curves occur? Explain with an example?

A: Iso quant curve refers to the curve which shows all the combination of inputs which are capable of…

Q: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

Q: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the…

A: Here, the given graph shows the marginal cost and average cost of producing doughnuts by the firm in…

Q: The situation facing by firm “Smart”,  a producer of running shoes, is shown in the following…

A: A monopolistic firm shares similar profit-maximizing constraint as the monopoly firm according to…

Q: Consider the following information about a business Rodriguez opened last year: price = $5; quantity…

A: Profits are calculated by taking the difference between the total revenue that is earned and the…

Q: Calculate marginal revenue if Marginal cost is $300 and marginal profit is also $300

A: Given : Marginal Cost = $300 Marginal Profit = $300

Q: Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above.…

A: A perfectly Competitive Firm maximizes profit by producing output at a level where P = MR = MC or MR…

Q: The graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per…

A: MR and AR curve is downward sloping curve which means more of good only can be sold with low price .…

Q: Explain how economics make profit or loss when firms are perfectly competitive.

A: In a competitive market there are large number of firms producing similar and identical products…

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: Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitive and…

A: we can fill the table by calculating the TR , MR , AR  which are as follow-

Q: Sterling runs a donut shop which which is being operated in a perfectly competitive market where…

A: Firms in perfectly competitive market, are price taking firms because there are a large number of…

Q: Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and…

A: We are going to use microeconomic concepts such as profit maximisation, perfect competition to…

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: An economic profit is the contrast/difference between the revenue got from the offer of a result and…

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: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition is a market structure where are large numbers of buyers and sellers. The sellers…

Q: If the firms are earning abnormal profit how will the number of firms in industry change?

A: According to the given question In Simple words we can say that the abnormal profits are the profits…

Q: Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she…

A: "Economic profit takes into account both explicit and implicit costs and is obtained by deducting…

Q: At his profit maximizing output, what is the total profit earned by Tim?

A: Answer: A monopolistically competitive firm maximizes its profit where the marginal revenue (MR) is…

Q: Consider the following information about a business Rodriguez opened last year: price = $5; quantity…

A: Accounting profit is the net income created by a company. Accounting benefit is a company's net…

Q: The accompanying graph depicts the Marginal Cost (MC), Average Cost (AC), Marginal Revenue (MR), and…

A: Perfect competition refers to the form of market in which there is large numbers of buyers and…

Q: Suppose Valerie runs a small business that manufactures teddy bears. Assume that the market for…

A: In the Question, Firm is a Price Taker which means there is Perfect Competition Market condition. In…

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: Profit is determined by deducting the costs from the income. While working out the monetary profit,…

Q: 1. Table: Consider the following information for a firm Q P A MR TR R 9.50 1 9.00 2 8.50 3 8.00 4…

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

Q: Explain the difference between a firm's revenue and its profit. Which do firms maximize?

A: Revenue is the total amount received by selling the required units of goods or services.  Profit is…

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: Accounting profit is the profit or the net income for the firm and the company after reducing all…

Q: Calculate Marginal profit given that marginal revenue is two times that of marginal cost

A: The given information is as follows:- Marginal revenue is two times that of total cost i.e MR = 2 MC…

Q: The graph shows the costs of Quick Copy, one of the many copy shops near campus. If the market price…

A: In the production process, the conditions and fluctuations that happen between demand and also the…

Q: Suppose Lucia runs a small business that manufactures teddy bears. Assume that the market for teddy…

A: Given, Market Price- $20

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition refers to the market structure where the number of buyers and sellers are large…

Q: Explain profit ?

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

Q: Explain how to determine a firm's cost of production and economic profit

A: Production Cost:- Manufacturing expenses are the expenses incurred by a firm when it manufactures an…

Q: MC ATC 12 10 ... 4 2 20 40 60 80 100 Quantity (pages per hour) Suppose the price of a copy is 10…

A: Given;

Q: Concept: Revenue of a Firm Farmer Jones grows oranges in Florida. Suppose the market for oranges is…

A: Given the firm is a perfectly competitive market, it implies that MR= P= AR TR = p*q All these…

Q: What tells you the profit a company makes on each item it sells? ROA EPS O ROS O ROE

A: Profit is the difference between the tital cost incurred in the production process and the tital…

Q: Consider the price-taker market for sports jackets. The following graph shows the marginal cost…

A: in short run and long run the , the firm should continue the business of not it depends on the…

Q: ving graph shows Eileen's total cost curve. lue points (circle symbol) to plot total revenue and the…

A: Q = quantity  TC = total cost TR = total revenue  MC = marginal cost  MR = marginal revenue

Q: Notes for graph: MC is marginal cost, MR is marginal revenue, ATC is average total cost, AVC is…

A: 1. In the aforementioned diagram, the downward sloping demand curve (D) and the marginal revenue…