Economic profit and opportunity costs
The major difference is that economic profit factors in implicit costs (sometimes called opportunity costs). Just what do we mean by opportunity costs anyway?
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A monopolist produces a single homogeneous good, which she sells in two distinct markets between which price discrimination is possible. Her total cost function is:
The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in competitive industry. Currently, the company is producing 40 units per period.
Discuss the nature of this functions scale of economies. Over what range of output does economies of scale exist? Diseconomies of scale? Show this on the graph.
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Over the last 30 years Organization of Petroleum Exporting Countries (OPEC) has had varied success in forming and maintaining its cartel agreements. Discuss how the following factors may contribute to the difficulty of forming and/or maintaining i
How does that associate to relationship of net income and working operations etc. Just that they have less cash now as the cost of generating new business?
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