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Economic profits may result from:
a. innovation Ob. risk taking
c. exploiting market inefficiencies
d. all the above
e. a and b
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- Knowledge Thinking Communication Application /2 /4 /4 /4 3. A used car dealership rents 210 cars for $9 a day. They want to increase the price to maximize their profits. They notice that if they increase the price by $1.25 that they have 10 fewer rentals. a. Create an equation for profit for the car dealership rental sales. b. Determine the price of the rental that maximizes profit.MICROECONOMICS See the graph below, Label and Describe in terms of : A. Name of Market Structure B. Ability to control prices C. Spending on advertising and marketing D. Pure profit, Normal profit or losses.Suppose oil prices rise sharply for years as a result of war in the Persian Gulf region. What happens and why to the demand for each of the following? a. gas-guzzling SUVs.b. Coal. c. Tires. Please answer step by step follow question.Answer must be correct. Don,t copy from anywhere. Write proper answer. Must expain what and why?
- A firm that is producing the quantity at which marginal cost exceeds both average total cost and the market price will increase its economic profit by a. producing a smaller quantity b. producing a smaller quantity c. raising the price to equal marginal cost d. producing the quantity that minimises average total cost e. producing a larger quantityInformation about Competitive marketWhat determining factor do buyers use to select products in a pure competition market? A. Brand B. Quality C. Price D. Profit
- This business deals with creation or production of goods like tables, chairs, and cabinets. A.Corn Farming B.Furniture Marketing C.Hog Raising D.Poultry FarmingYour friend, who has not taken any courses in economics, just inherited a company in another state. In three weeks, they will begin running a company about which they know nothing (not even the company's product or service). Explain various markets and how they work to your friend so your friend will be able to run the company.There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through economies of scale government protection control of an important input . b. ABC’s market power does does not guarantee that the firm makes an economic profit.
- Which one of the following variable, the firm can influence directly? a. Store location b. Consumers c. Technology d. CompetitionDoug's Donut Shop operates in a competitive market and is currently producing 200 donuts. He has average revenue of $1.50, his average total cost is $1, and his total fixed costs are $30. Does Doug have profits or losses?Select one:a. losses of $300.b. losses of $100.c. profits of $200.d. profits of $100.1. A _____ strategy is often used where there's a strong pressure to reduce costs and limited pressure to adapt products for local markets. A. home replicationB. transnationalC. multi domesticD. global
