Define abnormal profit
Abnormal profit: It is the gain earned over and above the normal profit.
What happens to ATC if MC < ATC? Answer: ATC will down or fall.
Even though the concentration ratio for an oligopoly is close to hundred, firms may operate rather efficiently when the market: (1) price conforms to a limit pricing model. (2) is contestable since entry and exit are easy. (3) demand curve is unitaril
Can someone please help me in finding out the accurate answer from the following question. Even a moderate minimum wage law influences labor markets by causing the unemployment of: (1) Unskilled workers when the labor market is per
When the market price is lower to cover average total costs, in that case a profit-maximizing firm will: (i) shut down instantly. (ii) continue to operate where P = MC when P > AVC. (iii) adopt newer technology. (i
When the wholesale price P = $5 per dozen roses, this purely competitive rose farm maximizes profit through producing ___ dozen roses at a total (loss or profit) of $___. (1) zero; loss; $2000. (2) 2000; loss; $1500.
In equilibrium, the relative value of an additional unit of a good to a specified consumer is approximately proportional to the: (w) marginal revenue to the firm that sold the good. (x) marginal production cost of the good. (y) relative market price of the good. (z) a
Definition of law of demand: It is the claim that, other things equivalent, the quantity demanded of a good drops/falls whenever the price of the good increases.
When a change in the supply of a good causes a percentage change within price which exceeds in absolute value the resulting percentage change within quantity demanded, then demand is relatively: (1) price elastic. (2) inferior. (3) no
Price discrimination: The Price discrimination is a situation whenever a monopolist charges distinct price from various buyers of the similar product. This is usually done to maximize profits.
The arbitrager is an organization or individual that will: (1) Simultaneously purchase low and sell high in various markets. (2) Create disparities among prices in various markets. (3) Resolve disputes among sellers and consumers. (4) Purchase low and
18,76,764
1960270 Asked
3,689
Active Tutors
1453981
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!