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

Q: Explain how short-run economic profits become long-run economic costs. When profits fall to zero,…

A: A stopwatch or a calendar cannot correctly identify the boundary between the short and long runs. It…

Q: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. How can you…

A: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. The…

Q: Should the Marginal revenue exceed the marginal cost? Why?

A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…

Q: What industry is the closest example you can think of to perfect competition, and why? What are its…

A: The market structure, which has numerous buyers and sellers, is perfect competition. The market…

Q: The following questions are based on the demand and cost data for a pure monopolist given in the…

A: Consider the following table:

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: Explain the concepts of revene, costs, and profit

A: Production is the process of merging numerous material and immaterial inputs (plans, know-how) to…

Q: Draw the cost-volume-profit diagram?

A: The cost-volume-profit analysis implies the relationship between costs and volume, selling price,…

Q: How do you define 'profit

A: The main objective of the firm in whether competitive or imperfect competition market is Profit…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

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: When will a business shut-down in the short-run?

A: Short-run: - it is a short time period in which some factors of production are variable and some are…

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: B4.i Last year, JJ left a job that pays $60,000 to run his own bike-repair shop. J's shop charges…

A: Given, Income forgone after leaving job = $60,000  Price per repair = $65  Number of repair = 3000…

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: Total Revenue Ст Maximum Profit Los Profit Cv Cr D'2 D Volume (Demand) Cost and Revenue

A:

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

A: When economic profits are positive, it means that a business or individual is earning more revenue…

Q: The graph shows the relevant curves for a profit maximizing monopolist. Assume that it is possible…

A:

Q: How do you calculate whether your business has an economic profit using marginal approach to profit…

A: Economic profit is a measure of performance that compares the profitability of a business with what…

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: To compute Economic Profits, which costs are used? Illustrate

A: The term ‘Economic Profit’ of a firm or an organization refers to the difference between the revenue…

Q: You turned down a job at ABC Corp last year that would have paid you $125,000 per year and started…

A: Accounting Profit = Total Revenue - Explicit Cost  Economic Profit = Total Revenue - [Implicit Cost…

Q: year to rent the location and buy the merchandise. In addition, he would have to quit his $63000 per…

A: A economic benefit or loss isthe distinction between the income got from the offer of a yield and…

Q: YCON101 FEX 2021 2Male Sppese the market price increased to $6. What is the firm's economic profit…

A: The following problem has been solved as follows:

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…