Normal profit
Normal profit signifies zero economic profit. Explain why?
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Answer: Assume that the existing firms are earning over normal profits. Attracted by the positive gains, the new firms enter in industry. The market supply rises and the price comes down. New firms carry on entering and the price persists to fall till economic profits are decreased to zero.
In condition of losses, firms begin leaving the industry, supply downs and prices begins going up and all this carry on till losses are wiped out. Remaining firms in industry then once again earn only normal profits or zero profit.
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The percentage of a specified population who are either unemployed or employed is termed as the: (1) labor force participation rate. (2) work-force proportion. (3) labor supply. (4) substitution effect dominance rate. (5) income-leisure loss curve. Q : Lowering price of units selling A A monopolist which does not price discriminate faces a marginal revenue curve which slopes down quicker than its demand curve since: (w) economies of scale are significant. (x) selling more needs lowering the price of
A monopolist which does not price discriminate faces a marginal revenue curve which slopes down quicker than its demand curve since: (w) economies of scale are significant. (x) selling more needs lowering the price of
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