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.
Which of the given demand curves have constant elasticities of demand as follows: (w) A vertical demand curve. (x) A horizontal demand curve. (y) A rectangular hyperbola. (z) All of the above. Hello guys I want you
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For water the price elasticity of demand is: (w) low since the price is high. (x) high since the price is high. (y) high since there are few substitutes for water. (z) low since this has few substitutes and a low price. Q : Earn high incomes in purely competitive Into a purely competitive market economy, people along with rare and valuable talents would earn high incomes due to: (w) monopsonistic exploitation. (x) interest maximization. (y) economic rent. (z) transfer payments. Discover Q & A Leading Solution Library Avail More Than 1442482 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1940528 Asked 3,689 Active Tutors 1442482 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
Into a purely competitive market economy, people along with rare and valuable talents would earn high incomes due to: (w) monopsonistic exploitation. (x) interest maximization. (y) economic rent. (z) transfer payments. Discover Q & A Leading Solution Library Avail More Than 1442482 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1940528 Asked 3,689 Active Tutors 1442482 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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