Economists typically assume that when making​ decisions, the owners of firms wish to maximize   A. production efficiency   B. ​short-term accounting profits.   C. sales revenues.   D. ​long-term economic profits.

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: A firm's revenue model describes how a firm will Select one: a. Produce a superior return on…

A: An revenue model is a structure for producing monetary pay. It recognizes which income source to…

Q: Efficient markets occur when?

A: When all the persons are satisfied with the economic transaction then it can be considered as…

Q: If resource prices are fixed and the selling price rises, then   a. profits will increase.   b.…

A: Profits are calculated as: Profit=TR-TCTR=P×Q Where, TR(total revenue) is the amount which the…

Q: 7. What are some industries in which products have proliferated and life cycles have shortened? How…

A: The process of introducing multiple variations of the same product into the market is termed…

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

A: In the domain of financial matters, effectiveness is a focal idea frequently used to assess the…

Q: What name is given to expenditures that must be made before production starts and that do not change…

A: The level of production, also known as the level of output, refers to the quantity of goods or…

Q: If a firm spends $200 to produce 20 units of output and spends $400 to produce 40 units of output,…

A: Marginal cost is the additional cost incurred to produce an additional unit of output

Q: The primary inducement for new firms to enter an industry is:  A. increased technology. B.…

A: Total revenue is the product of price and quantity.  Total cost is the total cost of producing…

Q: ncreasing marginal returns occur Select one: a. As output increases at low levels of production b.…

A: Marginal returns refers to the change in the total output when an additional variable factor of…

Q: Food Fanatics caters meals where its costof producing an extra meal is $25. Each ofits meals sells…

A: The firm will enhance its profit by employing more variable input to create more output as long as…

Q: Accounting profits are:  A. total revenue minus total cost. B. total cost minus total revenue. C.…

A: Total revenue is the total receipts a firm gets from selling of a product.  Total cost is the money…

Q: Costs that are "fixed": a. do not vary in the short run, but can change in the long run. b. will…

A: In economics, the flexibility of input defines the long-run and short-run periods. Short run: The…

Q: 1. Transfer prices should be set at a. marginal cost of the selling division plus a reasonable…

A: A transfer price is the price at which goods, services, or assets are exchanged between various…

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: Smaller firms generally enjoy economies of scale as they expand because: a. they are able to spread…

A: Economy of scale refers to the cost advantage achieved by the firm by increasing the production of…

Q: Table 13-7 The Flying Elvis Copter Rides Total Fixed Quantity Cost Variable Marginal Average Average…

A: To determine the value of  L , which represents the Average Total Cost (ATC) for producing 2 units,…

Q: Zero profit does not mean that the entrepreneur does not get anything for his efforts.   a. maybe…

A: Economic profit is not identical to accounting profit. It is the difference between accounting…

Q: Economic profits may result from: a. innovation Ob. risk taking c. exploiting…

A: Economic profit, otherwise called "pure profit" or "residual profit," is a measure of profitability…