What are economic profits? Does a firm in a competitive industry earn long-run economic profits? Explain.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Economics and Organizational Architecture

ISBN: 978-0073375823

5th edition

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

See More Books

Question Posted: Apr 11, 2018 03:41 AM

See More Questions

Multiple Choice Questions: 1. An explicit cost a. Is an opportunity cost. b. Is an out-of-pocket expense. c. Does not require an outlay of money. d. Is characterized by both a and b. e. Is...
True or False: 1. The perfectly competitive model does not assume any knowledge on the part of individual buyers and sellers about market demand and supplythey only have to know the price of the good...
Multiple Choice Questions 1. Which of the following is not a source of product differentiation? a. Physical differences in products b. Differences in quantities that firms offer for sale c....
Write a recursive program to draw plasma clouds, using the method suggested in the text.
Determine whether the sampling method described below appears to be sound or is flawed. In a survey of 783783 Subjects, each was asked how often he or she Read a book.read a book. The survey subjects...
Test scores from a calculus section of 40 students are shown in the histogram below. Describe the distribution of scores. Why might you be less sure of the description of the shape as compared to the...
On January 1, 2009, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000....
A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $25,000, the interest for the year will be $4,250. Because you must repay a total of $29,250 in one...
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Direct Materials 50,000 Conversion 50,000 Equivalent Units of Production Units Completed and transferred...
The South Beach Cafe recently reduced appetizer prices from $12 to $10 for afternoon early bird customers and enjoyed a resulting increase in sales from 90 to 150 orders per day. Beverage sales also...
The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in a competitive industry. Currently, the company is producing 40 units per period. What is the optimal...
Should a company ever produce an output if the managers know it will lose money over the period? Explain.
Due to rapid turnover in the accounting department, several transactions involving intangible assets were improperly recorded by Riley Co. in the year ended December 31, 2017: 1. Riley developed a...
A storeroom is used to organize items stored in it on N shelves. Shelves are numbered from 0 to N-1. The K-th shelf is dedicated to items of only one type, denoted by a positive integer A[K]....
CASES CASE 10.1 Money in Motion Jake Nguyen runs a nervous hand through his once finely combed hair. He loosens his once perfectly knotted silk tie. And he rubs his sweaty hands across his once...
(3.8) Axiom, Definition of false false = true (3.9) Axiom, Distributivity of over : (pq) p=q
The board of directors of Unilever has been impressed by the presentation you did, and they further instructed you to conduct a more insightful investigation about the Sri Lankan market. They have...
The sample space listing the eight simple events that are possible when a couple has three children is {bbb, bbg, bgb, ogg, gbb, gbg, ggb, ggg}. After identifying the sample space for a couple having...
Use a calculator to approximate each radical to three decimal places. V846.104
Given find the value of k. es 1 e kx dx = 1 4'
Use the linear demand curve shown below to answer the following questions: a. The point elasticity of demand at a price of $800 is _____________.b. The point elasticity of demand at a price of $200...
Use the figure below to answer the following questions: a. Calculate price elasticity at point S using the method? b. Calculate price elasticity at point S using the method E = P / P -A. c. Compare...
Write the equation for the demand curve in the graph for Technical Problem 7. What is the equation for marginal revenue? At what price is demand unitary elastic? At what output is marginal revenue...
Slow Roll Drum Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $198,000 in additional credit sales, 13 percent are likely to be...
Wendell's Donut Shoppe is investigating the purchase of a new $39,600 conut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings...
1.Discuss the challenges faced with Valuing Stocks and Bonds. As part of this discussion, how will the selected item be implemented in an organization and its significance? 2. Discuss how Valuing...

What are economic profits? Does a firm in a competitive industry earn long-run economic profits? Explain.

Question:

Step by Step Answer:

Economic profits are abnormal profits profits above what it takes to entic...View the full answer

Managerial Economics and Organizational Architecture

Students also viewed these Business questions