Define and explain the differences between accounting profit and economic profit

Q: Give typing answer with explanation and conclusion If Thomas made an accounting profit of $45,000 in…

A: Accounting profit refers to the financial gain earned by a business after deducting its explicit…

Q: Which of the following statements is true?   Accounting profit is always positive.…

A: The statement "Accounting profit is greater than or equal to economic profit" is true.…

Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…

A: Shutdown point is a point of production where a firm decides not to continue production as producing…

Q: In the long run, should we perfectly competitive firms a positive accounting profit? Explain your…

A: Perfectly competitive firms are firms operating in a market structure where there are many small…

Q: One A4 page please  Explain why there are no fixed costs in the long run

A: In long run, all the fixed costs that exist in short run becomes variable hence, there is no fixed…

Q: If a entrepreneur's accounting profit is positive but their economic profit is negative should they…

A: In a market, an entrepreneur enters and able to make accounting profit, it is the Sita when his…

Q: If Hasan runs the restaurant himself and before setting up this business, he was working in a…

A: An economic profit is the difference between the revenue a commercial entity has received from its…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Economists assume that by pursuing a strategy of cost minimization of production, most firms try to…

A: Expansion path shows the cost minimizing input mix  (K and L) of the firm plotted on both sides of…

Q: Use the table below to answer questions about Benny: Total Revenue Cost of Lemonade Wages Interest…

A: Given that Total Revenue$300,000  Cost of Lemonade$11,000Wages$2,000Interest$6,000  Benny the…

Q: What is the difference between accounting profit and economic profit? Select one: a. Accounting…

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: The gap that exists in a graph between total costs and fixed costs represents the variable costs of…

A: Total cost is the sum of variable and fixed costs. TC = TVC + TFC

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100…

A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…

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: Compare marginal revenue, marginal cost, and marginal revenue product.

A: The concepts of marginal revenue, marginal cost and the marginal revenue product are used by the…

Q: If marginal profit is $33 and marginal revenue is $80 What's the value of Marginal cost

A: The data presented in the question is:- Marginal profit of the firm = $33 Marginal revenue = $80…