--%>
Assignment Help - homework help

Economic profits by potential customers

When you lease a building for five years and rapidly achieve economic profits since it is located conveniently for potential customers: (1) you could capitalize some of these pure profits when you sold your business along with a sublease at the ending of the second year. (2) your rent would mostly certainly be raised when the lease ran out. (3) the owner evidently underestimated the building’s location rents. (4) similar firms most likely would soon open for business near you. (5) All of the above.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Market power as a price maker The only

    The only firm in this figure which has market power as a price maker is: (w) Firm A. (x) Firm B. (y) Firm C. (z) Firm D.

    Q : Synonym for the instant period or run

    A synonym for the instant period (or instant run) of production is the: (w) short run. (x) long run. (y) technological long run. (z) market period. Hello guys I want your advice. Please recommend some views for above Econom

    		•
  • Q : More willing to hold less cash and more

    When households become more willing to hold less cash and more stocks or bonds, in that case the: (1) level of Aggregate Demand increases. (2) present value of future income falls. (3) interest rate falls. (4) stock market will crash.

    		•
  • Q : Breaking natural monopoly Breaking a

    Breaking a natural monopoly within a number of competing firms would probably: (w) increase output and lower price to consumers. (x) reduce output and raise price to consumers. (y) reduce efficiency but lower price. (z) have no effect on output or pri

    		•
  • Q : Demand when price of good or resource

    When the price of a good or resource drops, the demands for: (i) That good or resource raise. (ii) Complementary goods or resources reduce. (iii) Substitute goods or resources reduce. (iv) Luxury goods and inferior resources drop.

  • Q : Labor Unions-Secondary Boycotts

    Whenever a firm consists of a collective bargaining agreement with its employees and unionized employees reject to handle the goods generated by other firms if the workers for other firms are on strike, then the unionized employees are engaged in the: (1) Secondary bo

    		•
  • Q : Theory of microeconomic game in market

    The theory of market structure which several microeconomic game theorists were ready to toss within the dustbin of intellectual history into the 1970 year but that, in the early 1980s, turned into a foundation for the “new&rdquo

    		•
  • Q : Problem on national income Can someone

    Can someone help me in finding out the accurate answer from the given options. In short run, the demand for a normal good increases when: (i) Income become less uniformly distributed. (ii) The prices of complementary goods increase. (iii) National income mounts. (iv)

    		•
  • Q : Purely competitive firms in increasing

    When purely competitive firms operate within increasing cost industries, several: (1) individual firms’ supply curves should be horizontal. (2) firms should experience decreasing returns to scale at low output levels. (3) specia

    		•
  • Q : Price elasticity of supply problem The

    The price elasticity of supply generally evaluates the ratio of relative: (i) Gain to the amounts firms supply at different prices. (ii) Price increase need to induce a firm to raise output. (iii) Change in the quantity supplied to a associative chang

    		•