Explain what it means in terms of opportunity cost when Economic profits are positive?

Q: If the law of diminishing returns did not hold, we can produce a the food the world needs in one…

A: In economics, diminishing returns is the decrease in marginal output of a production process as the…

Q: How do economies of scale affect business models in manufacturing industries, and how can smaller…

A: Economies of scale refer that when a manufacturing company starts their production on large scale it…

Q: Which of the following statements do you think reflect sound economic thinking? Explain your answer.…

A: Economic thinking is a way of analyzing economic phenomena. It is a process of examining the choices…

Q: Explain the benefits of experience curves?

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: 1.4) An example of innovation rent is: Select one or more: The cost of opening a new factory. The…

A: Opportunity Cost is the value of next best alternative sacrificed i.e. to receive one thing, the…

Q: What causes costs of production to vary with output in the short run? What generally causes costs…

A: The long run refers to a time frame where all factors of production and costs will be variable, and…

Q: When economic profits are zero in equilibrium, the firm's revenue must be sufficient to cover all…

A: Costs are the expenses that firms incur in the production of goods and services. A firm can incur…

Q: Consider the factors of production that go intoa fast-food restaurant. Give an example of…

A: Factors of production are regarded as the building blocks as they are essential for the production…

Q: Alice runs a shoemaking factory that utilizes both labor and capital to make shoes. Which of the…

A: If the other factors other than the price of capital or interest rate changes, the demand for…

Q: The Principle of Diminishing Marginal Returns means what?         the more a good is consumed, the…

A: Diminishing Marginal Returns states as additional units of a variable input are added to a fixed…

Q: What do we assume to be the goal a typical firm in the production model pursues? A. Maximized…

A: A market consists of many firms and consumers.  Firms are supplier of goods and services.  Consumers…

Q: . Why do firms exist in a market economy?

A: In a nation, the processes of production and sale and purchase all take place in what is called a…

Q: According to the article, what are some of the general benefits of microlending, as stated by…

A: Accessibility to financial services could prove essential for encouraging growth in the economy…

Q: Paul owns and operates his own business. To keep up with new technology, he spends $3,000 per year…

A: Here, it is given that Paul left his job with a salary of $100,000 per year to start his business…

Q: Explain Theory of production, and Theory of cost. Analyze the business, using at least a…

A: Theory of production: It is a theory which explains how a business decides how much of a good to…

Q: What "Economic profits are positive or negative " mean in terms of opportunity cost?

A: Opportunity cost defines the value of the next best choice that is given up when making a choice. It…

Q: Briefly discuss physical capital investment and long-run average cost in relation to a perfectly…

A: Physical capital and labor can usually substitute one another. The physical capital for cleaning up…

Q: Three managers of APISYONADO Company are discussing a possible increase in production who do you…

A: MR.NADO is correct as according to him  the extra revenues from selling the additional perfume…

Q: Define the economic principle of opportunity cost.

A: When another item or activity is chosen, an opportunity cost is described as the amount of a…

Q: McDonald’s hamburgers are everywhere! They can be purchased in cities and suburbs, on beaches, in…

A: The economics as a study is basically based upon the basic idea that the resources which are present…

Q: If profit is necessary to sustain economic activity, why is fixation on making money (greed) killing…

A: The necessity of profit for sustaining economic activity is undeniable, as it fuels innovation,…

Q: Economics? 2. How does it relate to microeconomics?

A: Managerial Economics  Managerial Economics  is a part of economics matters including the utilization…

Q: The following is based on question 11 in the textbook: Suppose a firm has to choose among production…

A: Cost minimization can be defined as the process of reducing expenditure on those processes which are…

Q: Which of the following is a cause of diminishing marginal productivity? a.In the long run, labor…

A: Marginal Productivity  Marginal productivity or marginal product is the additional output, return,…

Q: Give one limitation of marginal analysis and explain why?

A: As economies emerged, goods and services were produced that required machinery and labor. With time,…

Q: What factors contribute to achieving allocative efficiency in a competitive market, and how does it…

A: Allocative efficiency refers to how resources are distributed optimally in a market. It means that…

Q: Explain what is meant by allocative efficiency and under what conditions is this efficiency…

A: In a marketplace, efficiency refers to the ability of the market to get output with the given…

Q: The idea that the mission of business is to produce goods and services at a profit, thus maximizing…

A: The idea that the mission of a business is to produce goods and services at a profit, thus…

Q: 3. Nancy knits socks and sells them at the farmers market. The table below records the relationship…

A: Production function shows the relationship between physical inputs and physical output. On the other…

Q: What is opportunity cost? As scarce resource, financial capital has opportunity cost. What…

A: Opportunity cost is associated with almost every resource used by individuals when making social and…

Q: Answer this question based on the table in the picture below Suppose six units are currently being…

A: Here, in the table given, it can be seen that there is a constant marginal cost at every next unit…

Q: What are the merits of inductive method? Briefly discuss what are the shortcomings of this method in…

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Q: Abi Smithson may only be 9, but that isn’t stopping her from developing a new product and the plan…

A: The required answers for the questions are provided from a generalized economic perspective.The…

Q: I would agree that companies exist in their own right as long as the people who work for them and…

A: This is a thought-provoking discussion about companies acting as larger entities with their…

Q: What is the difference between explicit and implicit costs in economics?

A: Explicit costs are the immediate, personal installments a business makes to work, like wages,…

Q: Read the following short case scenario and then answer the questions. Fatma has always loved to cook…

A: Money: Cash is a financial unit that capacities as a by and large perceived trade vehicle for…

Q: DISCUSS Smith's pin factory example. describe the dramatic effects and the method by which these are…

A: A worker who specializes performs only one task or a limited set of tasks. It refers to separate…

Q: Microeconomics divides costs in to “short-run costs” and “long-run costs”. Can “long-run” differ…

A: The short run is defined as the time frame during which wages and prices of other production inputs…