Functions of Profits and Losses

The functions of profits into a market economy do NOT comprise: (1) stimulation for firms to be innovative and efficient. (2) compensating savers for delays of consumption. (3) signaling changing business conditions. (4) inducing mimicry of successful firms from competitors. (5) incentives to bear risk.

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

View Complete Question

Related Questions in Microeconomics

Q : C why cotton textile tndustry is a

why cotton textile tndustry is a microeconomic study

Q : Define production function Production

Production function: This refers to the functional relationship among inputs and outputs.

Q : Features of Monopoly Features of

Features of Monopoly: A) A Single seller B) No close replacement available. C) No freedom for entry of new firms. D) Possibility of price discrimination.

Q : When is marginal costs equivalent to

A purely competitive firm adjusts production therefore its marginal costs equivalent the market price, thus: (w) minimizing losses or maximizing profit. (x) ensuring that total costs do not exceed total revenue. (y) surviving the shor

Q : Marginal Revenue and Total Revenue If a

If a monopolist which does not price discriminate has maximum total revenue as: (1) demand is perfectly price elastic. (2) marginal revenue is positive. (3) demand is relatively inelastic (4) marginal revenue is

Q : Illustration of a strategic barrier An

An illustration of a strategic barrier would be a: (w) high-technology firm registering a patent on their newly-designed time machine. (x) law establishing the USPS as the only mail service in the United States. (y) set of costly advertising campaigns

Q : Help!! Why does a marginal benefit

Why does a marginal benefit curve slope downwards?

Q : Economists statement for sales to a

When Serena Williams, Cindy Crawford, Hillary Clinton, Katy Couric, Jennifer Lopez, and Ashanti all start wearing Wal-Mart jeans at public appearances, economists would explain any resultant raise in Wal-Mart’s jean sales to the change in: (1) Expectations regar

Q : Meaning of Caveat emptor I have a

I have a problem in economics on Meaning of Caveat emptor. Please help me in the following question. Caveat emptor signifies: (i) Let the seller beware! (ii) Everything else held steady. (iii) Let things modify if they should. (iv) Charge whatever the market will allo

Q : Distribution and production for social

Society as entire benefits most when the distribution and production of penicillin corresponds to: (a) point a. (b) point b. (c) point f. (d) point d. (e) point g.

Discover Q & A

Leading Solution Library

Avail More Than 1420775 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1938548
Asked

3,689

Active Tutors

1420775

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment