Define abnormal profit
Abnormal profit: It is the gain earned over and above the normal profit.
When raising ticket prices for Brad Paisley concert tickets raises total ticket revenue, in that case the demand for the concert tickets: (i) perfectly price inelastic. (ii) relatively price inelastic
Economic losses in an industry generate competitive pressures which cause: (1) industry output to fall. (2) market price to decrease. (3) each firm’s short-run output to increase. (4) rising costs for industry inputs. (5) firms to expand product
Key questions in evaluating a research report: In brief, there are five key questions you, as a consumer of analytical work, should ask yourself as you are evaluating a research report. 1. What is the purpose of th
Types of elasticity of supply: There are five kinds of elasticity of supply:1. Perfectly elastic supply: Q : High fashion at low prices-too good a The influence of high street chains selling very limited editions of designer clothes at much below equilibrium prices.
The influence of high street chains selling very limited editions of designer clothes at much below equilibrium prices.
The burden of taxation would become additional progressive when federal taxes were reformed in that case: (1) fewer business firms were capable to evade corporate profit taxes. (2) steeper taxes were levied on that harmful goods as alcohol and tobacco. (3) the proport
Determine the relationship among APC and APS? Answer: APC + APS = 1.
Components of capital account: (i) Foreign investment (ii) Foreign loans (iii) Banking capital and other capital (iv) Monetary movements.
I have a problem in economics on spending pattern in Substitution Effects. Please help me in the following question. Even when your real income were held steady by adjusting for price modifications, your spending pattern would react to modifications in relative prices
Which cost might there if output is zero? Answer: Fixed cost
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