If a business owner is earning a zero or normal economic profit, what does that mean?
Question:
If a business owner is earning a zero or normal economic profit, what does that mean?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (4 reviews)
When a business owner earns zero economic profit it means that the business is making exactly enough ...View the full answer
Answered By
Kainat Shabbir
i am an experienced qualified expert with a long record of success helping clients overcome specific difficulties in information technology, business and arts greatly increasing their confidence in these topics. i am providing professional services in following concerns research papers, term papers, dissertation writing, book reports, biography writing, proofreading, editing, article critique, book review, coursework, c++, java, bootstarp, database.
5.00+
184+ Reviews
255+ Question Solved
Related Book For
Economics An Introduction To Traditional And Progressive Views
ISBN: 9780765616685
7th Edition
Authors: Howard J. Sherman, E. K. Hunt, Reynold F. Nesiba, Phillip A. O'Hara, Barbara A. Wiens-Tuers
Question Posted:
Students also viewed these Business questions
-
Distinguish between accounting, normal and economic profits. What does normal profit include that accounting profit does not? If Economic profit is = 0, what does that mean for normal profit? Is...
-
Economic Rent and Profiting from Entrepreneural Skill: Suppose, as in exercise 14.4, that you are operating a hamburger restaurant that is part of a competitive industry. Now you are also the owner,...
-
MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
-
The Chicago Omni Hotel is a 750-room luxury hotel offering guests the finest facilities in downtown Chicago. The hotel is organized into four departments: lodging, dining, catering, and retail...
-
On March 1, 2006, Tim Cochran established Star Realty, which completed the following transactions during the month: a. Tim Cochran transferred cash from a personal bank account to an account to be...
-
1. Assume that both Popperson and Snow are CPAs. Do you think Snow violated his confidentiality obligation under the AICPA Code by informing Popperson about the faulty equipment at CSM? Why or why...
-
Ina recent year, National Air Lines, Inc., filled 50 percent of the available seats on its flights, a record about 15 percentage points below the national average. When you answer this question,...
-
Brockman Company closes its books on October 31. On September 30, the Notes Receivable account balance is $18,800. Notes Receivable include the following. Interest is computed using a 360-day year....
-
You are playing a game where you draw a card from a standard deck, and you will win $19 if you draw a face card, $19 if you draw an ace and lose $18 if you draw any other card. What is the expected...
-
If a business owner is earning a zero or even negative economic profit, does that mean the accounting profit is negative? Explain.
-
Would a business owner want to stay in business if the economic profit is negative? Explain why or why not.
-
Assume that at the end of the next year, Company A will pay a \($2.00\) dividend per share, an increase from the current dividend of \($1.50\) per share. After that, the dividend is expected to...
-
The preparation of working papers is an integral part of a CPA's examination of financial statements. On a recurring engagement, a CPA reviews his audit programs and working papers from his prior...
-
Johnson, Inc., a closely held company, wishes to engage Norr, CPA, to examine its annual financial statements. Johnson was generally pleased with the services provided by its prior CPA, Diggs, but...
-
The first standard of field work includes adequate planning of the work. Required: a. What is the objective of audit pianning? b. What information about the client is essential in planning? c....
-
Different views, opinions, approaches and methods have existed in economics for almost as long as the profession has existed. Despite this, some approaches and methods tend to rise and dominate...
-
The audit process may be divided into three categories: planning the audit, executing the audit program, and reporting the findings. Within these categories, the following specific steps must be...
-
Explain how a firm such as J. Crew can be doing well, but does not have an effective vision or mission statement.
-
Anne is employed by Bradley Contracting Company. Bradley has a $1.3 million contract to build a small group of outbuildings in a national park. Anne alleges that Bradley Contracting has discriminated...
-
What is corporate risk management? Why is it important to all firms? MINI CASE Assume that you have just been hired as a financial analyst by Tennessee Sunshine Inc., a mid-sized Tennessee company...
-
Risks that firms face can be categorized in many ways. Define the following types of risk: (1) speculative risks; (2) pure risks; (3) demand risks; (4) input risks; (5) financial risks; (6) property...
-
What are the three steps of corporate risk management? MINI CASE Assume that you have just been hired as a financial analyst by Tennessee Sunshine Inc., a mid-sized Tennessee company that specializes...
-
Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $358,000 of 25-year, 10% callable bonds on May 1, 20Y5, at their face amount, with interest...
-
Sports Hats, Etc. has two product lines-baseball helmets and football helmets. Income statement data for the most recent year follow: Total Baseball Helmets Football Helmets Sales revenue $460,000...
-
HDFS 3350 DJ Richards wondered if he had adequate life insurance for his family if he were to pass away. He decided to complete the Life Insurance Worksheet. His current yearly income is $38,400. He...
Study smarter with the SolutionInn App