Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider this public discussion about the profitability of SpaceX and answer the questions that follow: https://www.quora.com/Was-SpaceX-profitable-in-2021?share=1 The first post in this discussion says: Given the

Consider this public discussion about the profitability of SpaceX and answer the questions that follow:

https://www.quora.com/Was-SpaceX-profitable-in-2021?share=1

The first post in this discussion says:

"Given the amount they are spending on StarLink (both the satellites, the launch costs and the ground equipment) - that project cannot be remotely profitable yet. They are doubtless losing money - and will continue to do so until they have a large number of subscribers.

<...>

SpaceX also won some NASA grants - which will add to the bottom line.

I'd guess - from these numbers - that they probably either broke even, or made a moderate loss."

(a) Does this post talk about the economic profit and loss or the accounting profit and loss? Explain.

(b) Does SpaceX have the economic profit or loss? Discuss. Use the economic theory you have learned in this course.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: David C. Colander

10th edition

1259663043, 1259663048, 978-1259663048

Students also viewed these Economics questions