Economic profits may result from: a. innovation Ob. risk taking c. exploiting market inefficiencies d. all the above

Q: economic profit serves as a beacon to entrepreneurs.  This means

A: Q1 it is true, economic profits serves as beacon to entrepreneur  If there is positive profit then…

Q: Write a sentence or two defining the following terms in your own words. Give examples of each.…

A: Y. Market equilibrium is where both the demand and supply are equal.

Q: When a firm's average total cost is at its minimum, what type of efficiency is achieved? A.…

A: In economics, efficiency is a key idea that helps in understanding how well resources are being used…

Q: A. In a market situation where supply exceeds demand, which from the following list would you…

A: Answer- (A) Answer is (c) Change overtime or under time. In a market situation where supply exceeds…

Q: Dollars $400 $300 $200 $100 Figure 11-3 MC ATC AVC MR D Quantity of Output 20 40 40 60 80 100 120…

A: A firm's profit is the difference between revenue and total costs. The revenue is the total amount…

Q: Figure 1 MC Revenue and cost (dollars per unit) MR $40 ATC AVC 24 C. 20 14 12 200 Quantity 100 150…

A: The type of market structure in the above graph is that of perfect competition. Perfect competition…

Q: Question 1 Table 1 below shows Samsung's Company production for washing machine in a week. The total…

A: Output TC MC P TR MR Profit 0 10   0       1 35   20       2 40           3 50           4…

Q: Economic efficiency means using the method that produces given level of output at_

A: Economic efficiency implies utilizing the technique that creates a given degree of yield at the most…

Q: POLICY PERSPECTIVES Adam Smith in The Wealth of Nations asserted that the pursuit of self-interest…

A: The term self interest can be easily defined as the personal gain one tries to get. It is basically…

Q: Write a sentence or two defining the following terms in your own words. Give examples of each. a.…

A: A) Market Equilibrium Point  It means the point where forces of demand and supply equals.  So it…

Q: According to the corn market depicted below, what do we expect to happen as this market transitions…

A: In the long run, a perfectly competitive firm makes zero economic profit. Attracted by the positive…

Q: Market Structure: Perfect Competition P 400 300- 200 100 0 0 45 10 15 D = MR 20 MC 25 ATC 30 e…

A: The average total cost is the total cost per unit output. It is calculated by dividing the total…

Q: 1. Perfect Competition: a. What are the key features of a perfectly competitive market? b. Will a…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Describe the 4 market structure and how each market structue assist in starting of a business?

A: Market structures refer to the classification of firms or industries on the basis of various…

Q: All of the following are elements of the new competitive landscape EXCEPT: A. technological change…

A: The new competitive landscape is an analysis method of the competitiveness and comparative advantage…

Q: Which of the following is NOT one of the advantages of being a first mover? A. A sustainable…

A: B. The financial strain of creating a new market. This option is NOT an advantage of being a first…

Q: What is the firms profit or loss?

A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.