Define and explain the differences between accounting profit and economic profit

Q: By using the notions of fixed and variable costs explain why theme parks close in winter months

A: Fixed and variable cost Fixed cost refers to cost that remains fixed at all level of output and does…

Q: explain the short run fixed costs and the variable cost in modern economics?

A: Cost refers to the amount of money that is  spent by the firm to produce a product . Cost   refers…

Q: Give typing answer with explanation and conclusion If Thomas made an accounting profit of $45,000 in…

A: Accounting profit refers to the financial gain earned by a business after deducting its explicit…

Q: What happens to the average fixed cost, when the output of a firm increases.

A: # In an economy, the average fixed cost is referred to be as fixed cost per unit of output produced.…

Q: Explain why it is not economical for a firm to operate under increasing returns and negative…

A: Solution: Increasing return: It is the first phase of production. In this phase every additional…

Q: Which of the following statements is true?   Accounting profit is always positive.…

A: The statement "Accounting profit is greater than or equal to economic profit" is true.…

Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…

A: Shutdown point is a point of production where a firm decides not to continue production as producing…

Q: In the long run, should we perfectly competitive firms a positive accounting profit? Explain your…

A: Perfectly competitive firms are firms operating in a market structure where there are many small…

Q: One A4 page please  Explain why there are no fixed costs in the long run

A: In long run, all the fixed costs that exist in short run becomes variable hence, there is no fixed…

Q: If a entrepreneur's accounting profit is positive but their economic profit is negative should they…

A: In a market, an entrepreneur enters and able to make accounting profit, it is the Sita when his…

Q: If Hasan runs the restaurant himself and before setting up this business, he was working in a…

A: An economic profit is the difference between the revenue a commercial entity has received from its…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: What is the relationship between the marginal cost (MC) curve and marginal product MP) curve of a…

A: The marginal product is the change in the total product when an additional unit of the variable…

Q: Page 1 of 1 Answer each of the following questions and don't forget to indicate the sign (positive…

A: Economic profit is the money left over after all direct and indirect expenses have been paid.…

Q: Explain the difference between accounting and economic profit. Give two examples of when they…

A: Accounting profit means that profit which is earned after the explicit costs are deducted from…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Economists assume that by pursuing a strategy of cost minimization of production, most firms try to…

A: Expansion path shows the cost minimizing input mix  (K and L) of the firm plotted on both sides of…

Q: variable costs (AVC), average total costs (ATC), and marginal costs (MC) to fill in the missing…

A: Fixed cost refers to the cost that stays same at all levels of output. Variable cost is the cost…

Q: Marginal revenue must exceed marginal cost.Explain why?

A: Total revenue is the total receipts collected from the sale of goods or services in the market. The…

Q: Family Mart like inner city grocery stores, sometimes exist even though they do not earn economic…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Use the table below to answer questions about Benny: Total Revenue Cost of Lemonade Wages Interest…

A: Given that Total Revenue$300,000  Cost of Lemonade$11,000Wages$2,000Interest$6,000  Benny the…

Q: True or False? Briefly discuss. a. If a firm makes zero economic profit, the firm earns revenue that…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Briefly explain the short run fixed costs and the variable cost in modern economics?

A: Short-run is the time period that is less than or equal to a year. The costs can be divided into two…

Q: Which of the following is correct with respect to economic profit? PLEASE EXPLAIN THANKS!   A.…

A: The main objective of any firm is profit maximization and a firm maximizes its profit by producing…

Q: With the help of an example explain the difference between accounting and economic profit. Building…

A: The term perfect t competition refers to a theoretical market structure. during a perfect…

Q: he difference between economic profit and accounting profit is that economic profit is calculated…

A: here we find the whether the given statement is true or false as follow;

Q: The difference between accounting profit and economic profit is that accounting profit is the…

A: An explicit cost is the clearly stated costs that a business incurs. For example, employee wages,…

Q: What is the difference between accounting profit and economic profit? Select one: a. Accounting…

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: The gap that exists in a graph between total costs and fixed costs represents the variable costs of…

A: Total cost is the sum of variable and fixed costs. TC = TVC + TFC

Q: Your uncle is thinking about to open a fish & chips restaurant. He estimated that it would cost…

A: In economics, explicit cost is the direct cost of choosing an alternative and make expenditure on…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100…

A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…

Q: Discuss the relationship, with the use of a graphical illustration(virtual), of the firm's total…

A: According to the law of diminishing marginal returns, every production process will eventually reach…

Q: Show the effect of diminishing returns on the marginal and average cost curves of a firm in the…

A: diminishing returns is a  financial regulation expressing assuming one contribution to the…

Q: Define the term Unit-Profit?

A: The profit that is earned per unit of the output is known as Unit-Profit. Clearly, the profit that a…

Q: Compare marginal revenue, marginal cost, and marginal revenue product.

A: The concepts of marginal revenue, marginal cost and the marginal revenue product are used by the…

Q: If marginal profit is $33 and marginal revenue is $80 What's the value of Marginal cost

A: The data presented in the question is:- Marginal profit of the firm = $33 Marginal revenue = $80…

Q: Q9. A firm sold 20,000 SD cards at $50 each in the previous year. The firm also spent $600,000 on…

A: Sales = 20,000 SD card @ 50 each Labour Cost = 6,00,000 Capital Equipment = 50,000 Raw material =…