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.
When all production costs for a monopoly are fixed [MC =0], in that case economic profit: (i) falls when price is raised in the inelastic range of a demand curve. (ii) rises when price is cut in the inelastic range of
The degree of inequality of income in between households and individuals is the: (w) marginal productivity theory of income distribution. (x) functional distribution of income. (y) distribution of wealth. (z) size distribution of income.
If Alfred Marshall categorized the analytical periods of time, he supposed that in short run it is: (i) Not possible to vary technology and at least one resource is fixed and hence at least one kind of cost is as well fixed. (ii) Possible to move the resources from on
When a $5 price hike raises the number of tanks of dehydrated water supplied into this market from point a to point b, there elasticity of supply is: (w) 4.5. (x) 3.0. (y) 1.5. (z) 0.5. Q : Question on demand and supply Refer to Refer to the following diagram. A decrease in supply is illustrated by a: A) move from point x to point y. B) shift from S1 to S2. C) shift from S2 to S1. D) move from point y to point x. Q : Labor Union History problem Can someone Can someone please help me in finding out the accurate answer from the following question. The labor unions have tended to be most successful in the organizing: (1) Blue collar workers. (2) Clerical workers. (3) Professionals. (4) White collar workers.
Refer to the following diagram. A decrease in supply is illustrated by a: A) move from point x to point y. B) shift from S1 to S2. C) shift from S2 to S1. D) move from point y to point x. Q : Labor Union History problem Can someone Can someone please help me in finding out the accurate answer from the following question. The labor unions have tended to be most successful in the organizing: (1) Blue collar workers. (2) Clerical workers. (3) Professionals. (4) White collar workers.
Can someone please help me in finding out the accurate answer from the following question. The labor unions have tended to be most successful in the organizing: (1) Blue collar workers. (2) Clerical workers. (3) Professionals. (4) White collar workers.
The output of RoboMaids consequent to the point where demand has unitary price elasticity is approximately: (i) 2,000 robots weekly. (ii) 4,000 robots monthly. (iii) 6,000 robots monthly. (iv) 10,000 robots monthly. (v) 13,000 robots monthly.
Compared to other relatively prosperous developed nations, the United States: (w) has greater inequality in the distribution of its wealth and national income. (x) enjoys the lowest cost medical care and the best average public health. (y) has been the most aggressive
Financial instruments which promise fixed constant cash flows at equal time intervals forever are termed as: (1) coupon debentures. (2) perpetuities. (3) perennials. (4) residuals. (5) dividends. Please choose the righ
When this monopolistic competitor makes Q units: (1) P > MC. (2) MR = MC. (3) total revenue total cost is maximized. (4) MSB > MSC. (5) All of the above. Discover Q & A Leading Solution Library Avail More Than 1427557 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1926226 Asked 3,689 Active Tutors 1427557 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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