What is the meaning of economic profit. Support your answer by example?

Q: use relevant diagrams as well as microeconomic theory, discuss why competitive firms stay in…

A: In the long run, a firm in a perfectly competitive market will only make a normal profit(zero…

Q: What happens to the value of resources when losses are present? If a firm making losses goes out of…

A: The value of resources decreases when the firms make losses as it would mean that the revenue earned…

Q: Do entry and exit occur in the short run, the long run, both, or neither?

A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…

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: 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: 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: 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: State what market structure exists in Jamaica since the early 2000s. Explain if excess profit will…

A: Since early 2000s monopolistic competition exists in Jamaica.

Q: What evidence of economic competition do you see in your everyday life? what evidence do you see on…

A: Economic competition refers to the situation where the firms in the economy compete with each other…

Q: What type of organization is appropriate in the competitive business environment?Please explain with…

A: Competitive business environment:-  A competitive environment can be explained as a framework…

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: 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: What is marginal revenue and marginal cost?

A: Marginal cost and marginal revenues are main concepts that determine th optimal output of the firm.

Q: Economic profit is

A: To find : What is economic profit

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: Price = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic…

A: Given: Price = $20, Quantity = 400 units, Unit cost = $15, Implicit costs $ = 4,000 To find: econom

Q: b.How do you think the technology that you use, affects the market structure and/or the demand of…

A: Quartz watches and clocks are timepieces using an electronic oscillator being regulated by a crystal…

Q: Buffy is thinking about opening an amulet store. She estimates that it would cost $350,000 per year…

A: Opening new business require to analysis the cost amd benefits of it . And also consider the amount…

Q: Tony is a wheat farmer, but he spends part of his day teaching guitar lessons. He has more students…

A: Economic profit is the difference between total revenue and the sum of explicit and implicit cost.

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: 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: 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: 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 profit maximizing output?

A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…

Q: Can you explain what is Perfect Competition and how does Perfect competition work?

A: Market structure refers to the place where the transaction of goods and services takes place between…

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: 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: 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: Explain profit ?

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

Q: explains why business should be ethical and why not all businesses are ethical.

A: Business Ethics:  By definition, business ethics allude to the norms for ethically good and bad…

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: 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: To compute economic profits, which costs are used?

A: The economic profits of a firm could be estimated by the difference between total revenue and total…