Define abnormal profit
Abnormal profit: It is the gain earned over and above the normal profit.
Interest rates on specified financial instruments tend to be lower the: (1) shorter the period to maturity. (2) greater the risk of default. (3) less liquid is the asset. (4) greater the expected rate of inflation. (5) greater the face value is relati
Of the given firms, the best illustration of a natural monopoly is: (i) Dell, the largest seller of personal computers. (ii) Toyota, i.e., the huge car company in the world. (iii) OPEC, i.e., the international oil cartel. (iv) Google that dominates th
As per the marginal productivity theory of income distribution, within a system of market capitalism, in that case income is distributed primarily in accord along with: (1) resource productivity and ownership. (2) how
Assume that the banker is employed at an annual salary of $60,000. She as well has financial assets worth of $40,000 which earns $1,500 per year in interest. She too owns a commercial building that she rents out for $20,000 per year. Now assume that she quits this job
Marginal revenue product of the labor surpasses the: (i) Additional revenue generated by each extra unit of labor. (ii) Value of marginal product of labor merely for the competitive sellers of output. (iii) Average fixed cost for natural monopoly. (iv
A family whose income leaves this hovering at the brink of survival and that gives only a razor’s edge existence is experiencing: (w) relative poverty. (x) economic shock. (y) financial destitution. (z) absolute poverty. Q : Workers preference of leisure The The backward bending supply curve for the labor takes place when: (1) Firms want to hire only some quantity of labor. (2) There is a change in elasticity of the resource supply. (3) Workers prefer leisure over added income over some wage. (4) Minimum wage legislation
The backward bending supply curve for the labor takes place when: (1) Firms want to hire only some quantity of labor. (2) There is a change in elasticity of the resource supply. (3) Workers prefer leisure over added income over some wage. (4) Minimum wage legislation
Within a competitive industry into the long run: (w) economic profits are common. (x) existing firms wither in growing industries. (y) economic profits induce new firms to enter an industry. (z) accounting profits will be zero for all firms.
The supply curve for perishable goods which, once produced, can’t be stored in inventory is generally functioned as perfectly price inelastic into the: (i) short-run. (ii) intermediate period. (iii) long-run. (iv) market period. (v) fiscal year
Elucidate Production Possibility curve with the help of a diagram? Answer: The Production Possibility Curve refers to a curve that shows various production possibil
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