What is meant by normal profit?

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 would be the value of economic profit if explicit cost is $200, implicit cost is $150 and total…

A: The data presented in the question above is:- Explicit cost of the firm = $200 Implicit cost of firm…

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: Explain why it is not economical for a firm to operate under increasing returns and negative…

A: Solution: Increasing return: It is the first phase of production. In this phase every additional…

Q: customers there while you golf. Why do you think a miniature golf course would stay open during the…

A: *answer:

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: If demand is greater than the order quantity, i.e., D > Q, what is the profit formula?

A: Demand is the quantity of a good or a service that consumers are willing and able to purchase at…

Q: What is the relationship between a firm’s total revenue, profit, and total cost?

A: Total revenue (TR) is the amount earned by the firm by selling its goods. Total Cost (TC) is the…

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: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a…

A: Answer -

Q: What is profit

A: Profit = Revenue - costs

Q: How do you define 'profit

A: The main objective of the firm in whether competitive or imperfect competition market is Profit…

Q: What is average profit margin means?

A: Profit margin is calculated by dividing income by sales to determine how profitable a firm or…

Q: derive an expression for teddy's profit function

A: Profit can be defined as the difference between the revenue and costs of the products.

Q: Explain using diagrams, the law of diminishing returns

A: The rule of diminishing marginal returns is an economic theory that states that once an optimal…

Q: Using the figure above, what is profit/loss for the firm?

A: In the case of a profit-maximizing firm, the optimal point of production is where the price is equal…

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: . Which is the other name that is given to the average revenue curve?

A: The average revenue curve represents the revenue per unit for different quantities of output.

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: Are there some companies where the learning curve may not apply as much? What are some signs that a…

A: A learning curve is a concept. It often to illustrate the repeated task of an employee or worker. It…

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

A: Filling for bankruptcy does not mean that the firms have to shut down. In the US the bankruptcy laws…

Q: Define the term Unit-Profit?

A: The profit that is earned per unit of the output is known as Unit-Profit. Clearly, the profit that a…

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: 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: What is Product Expansion?

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

Q: Why is a normal profit considered an economic cost?

A: Why is a normal profit considered an economic cost?  Normal profit is an economic term, refers to a…

Q: Explain profit ?

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

Q: Discuss the concept of the law of diminishing marginal returns

A: The total product (or return) refers to the aggregate goods and services produced by the firm at…

Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average…

A: Returns to scale is an important concept in economics which studies how the output is affected if…

Q: If a firm’s current revenues are less than its current variable costs, when should it shut down? If…

A: The firms have several things to look after, including the total costs, fixed costs, variable costs,…

Q: Explain average fixed cost (AFC)?

A: Costs are the sums of money spent by producers on various variables of production in order to…

Q: What two lines on a cost curve diagram intersect at the zero-profit point?

A: For a perfectly competitive firm, average cost curve and marginal revenue curve intersect each other…

Q: When a firm takes the short-down decision?

A: Shut down is a situation when it is better for the firm not to produce instead of producing.