--%>
Assignment Help - homework help

Market system is a profit-and-loss economy

Evaluate and explain the statements: “The market system is a profit-and-loss economy”

E

Expert

Verified

The quotation is accurate. To produce income in a market system are motivated by attempt producer decisions. Those products that enable a firm to earn at least a normal profit will be produced.  If the manufactured goods is not be formed for a profit, in other words we can say, if losses are concerned in manufacture, capitalist firm will respond by seeking lower cost production methods and may stop the making of goods completely.

   Related Questions in Business Economics

  • Q : Question 7 Question 7: You are given

    Question 7: You are given the following data about two firms: FIRM A Quantity 0 1 2 3 4 5 6 Total revenue ($) 0 10 20 30 40 50 60 Average revenue ($) ___ ___ ___ ___ ___ ___ ___ Marginal revenue ($) ___ ___ ___ ___ ___ ___ Total cost ($) 30 42 50 60 76 100 14

    		•
  • Q : The supply curve when each of these

    What happens to the supply curve when each of these determinants changes?

    		•
  • Q : Illustrate the advantage of corporate

    Illustrate the advantage of corporate form of organization?

    		•
  • Q : External costs and external benefits

    Explain the impact of external costs and external benefits on resource allocation

    		•
  • Q : Important source of revenue and major

    What is the most important source of revenue and the major type of expenditure at the Federal level?

  • Q : Illustrate Scarcity and choice of

    Illustrate Scarcity and choice of Economic Perspective?

    		•
  • Q : Illustrate Rational Behaviour of

    Illustrate Rational Behaviour of Economic Perspective?

    		•
  • Q : Freely Floating Currency Question: For

    Question: For a freely floating currency, currency i.____________________ occurs when the market value of a country's currency rises relative to the value of another country's currency, while currency ii.__________

    		•
  • Q : Risky forms of production to gain

    Entrepreneurs: (w) undertake risky forms of production to gain uncertain profits. (x) obtain interest payments for their services. (y) are usually overcompensated for their innovations. (z) receive virtually all their wealth by inheritance.

  • Q : Meaning of Economic Development

    Question Discuss what "economic development" means in the context of this game? (Hint: How do you win, and what do you have at the end of the game that you did not have at the beginning of the game?)