Q: economic profit serves as a beacon to entrepreneurs. This means
A: Q1 it is true, economic profits serves as beacon to entrepreneur If there is positive profit then…
Q: Based on your answers from the previous question, and assuming that the marginal revenue curve is a…
A: Answer: Price (P) (dollars per unit) Quantity (Q) (units of output) Total revenue (TR)= P*Q…
Q: Factors that cause the short-run supply curve to change are factors that affect
A: In the short run supply can be able to change with limited resources.
Q: Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and…
A: Answer: Explicit cost: It is the payment made to outsiders for hiring factor services. It involves…
Q: Place the orange line (square symbol) on the following graph to show the most likely short-run…
A: Below shows the short-run supply curve as follows:
Q: Explain some of the different factors that would affect a firm’s profitability and what might make a…
A: The profit/loss of a firm is the amount of net benefit from to the business from participating in…
Q: How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller…
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: As a function of the prices it sets, GPW's monthly revenue function is ?As a function of the prices…
A: *Hi there , as you have requested for multiple sub-parts to be answered . As per our guidelines we…
Q: Explain why a long-run supply curve might slope upward.
A: The supply curve indicates the relationship between price and quantity supplied by the firms.
Q: Wells Fargo was the darling of the US banking industry, with some of the highest returns on…
A: The banking sector is important for a particular economy. The central bank is the head followed by…
Q: What is the difference between Economic Profit and Accounting profit?
A: Explicit Cost is the cost paid to factors of production that are hired from outsiders. Implicit Cost…
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: What is the definite rule to maximize profit?
A: Profit is the difference between total revenue and total cost and profit is maximized where the…
Q: Use your own example to clearly differentiate between an "accounting profit" and an "economic…
A: When talking about the difference between economic and accounting profit, it can be said that…
Q: What is The position of the long run Philips curve is determined by
A: Philips Curve: This is the curve that shows the relationship between the inflation rate and the…
Q: Use the following graph to answer the questions below. Please enter your answers as whole numbers…
A: a) When the price is P1: MC cuts P1 at quantity 80 when the price here is 30 and ATC at 20, which…
Q: How would this change in the long-run? Can you show the graph in the long-run too?
A: The long run is a long time which is enough for capital as a factor of production to be variable and…
Q: What is meant by normal profit?
A: The total revenue earned by a firm operating in a market is the sum of payments received from the…
Q: In the long run, do we expect more firms or fewer firms in the t-shirt market or does the market…
A: The T-shirt market is the monopolist market where are a large number of buyers and fewer seller are…
Q: What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?
A: The Law of Diminishing Return: It occurs when the employment of input with the other fixed input of…
Q: You are running a chocolate factory and need to decide on the price to sell the chocolate as well as…
A: Profit maximiser firms decide to charge price and output determination is set when marginal cost and…
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: Help please. Can you give me at least 5 Short-term strategies, 5 Intermediate-term strategies, and 5…
A: IKEA company: IKEA is a Swedish global organization that was established in 1943 by 17-year-old…
Q: When we know that the firms are earning just normal profits.
A: To find : When do firm earn normal profit.
Q: Can a firm earn an economic loss and an accounting profit at the same time?
A: The measure that depicts distribution of income to owner in a profitable process of production in…
Q: The data in the following table give information about the price P (in dollars) for which a firm can…
A: As we know , that profit is the difference between total income and total cost . Whereas Marginal…
Q: Legendary for his business and investment acumen, Warren Buffett is frequently called the “Oracle of…
A: Elaborating the statement of the buffet, A producer operating at a higher cost cannot sustain itself…
Q: What is the difference between economic profit and accounting profit?
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Briefly define the short run and long run supply curve?
A: The supply curve is a graphical representation that describes the relationship between the price and…
Q: raw up a complete ASAD graph and correctly label ALL of the following on the graph AD SRAS LRAS…
A: The diagram related to AD-AS is as follows
Q: If every comptitive firm earns abnormal profits in the short run, what do you expect will happen in…
A: Perfect competition is the market structure in which there are large number of sellers who sell the…
Q: Why is a normal profit considered an economic cost?
A: Why is a normal profit considered an economic cost? Normal profit is an economic term, refers to a…
Q: Distinguish between short-run and long-run supply curves.
A: Short run refers to a period of time during which some manufacturing elements are constant while…
Q: Discuss how technological change can increase profits by raising revenues or lowering costs.
A: Answer - The technological change can increase profits by rising revneus or lowering costs:- 1.…
Q: What are some examples to illustrate Henry Hazlitt's lesson that what is true in the short run may…
A: According to Henry Hazlitt's lesson: Actions that are advantageous in the short run can cause…
Q: 8. Which of the following are short-run decisions and which are long-run decisions? a. General…
A: Short run refers to the time period which does not allow changes in the capital to adjust with the…
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: Macroeconomics and microeconomics are important part of country mechanism. Aggregate demand and…
Q: How is it possible to have positive accounting profit and negative economic profit concurrently?
A: Answer: Let us first understand the difference between accounting profit and economic profit.…
Q: According to the theory of the firm, ceteris paribus, the value of the firm decreases with a…
A: Total Cost: Total cost refers to the cost that encompasses the fixed cost and the variable cost.…
Q: If the firms in a market have accounting profits that are larger than their implicit costs, then, in…
A: Answer: If the firm has accounting profit larger than the explicit cost it means the firm is earning…
Q: Why is it reasonable to think of normal profit as a type of cost to the firm?
A: In the short run, firms usually try to temporarily shut down their operations when the prices are…
Q: Explain why it is not sensible to close a business firm if it earns zero economic profits.
A: Zero economic profit implies that the firm would earn the same if it decides to invest in the next…
The graphs suggest that in the long run, assuming no changes in the given information,
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Use the following graph for a competitive market to answer the question below. The horizontal axis lists quantity as 50, 150, and 250 and the vertical axis ranges from 0 through 30, in increments of 5. A decreasing curve labeled D is connecting data points (50, 25), (150, 15), and (250, 10). An increasing curve labeled S is connecting data points (50, 10), (150, 15), and (250, 25). Both curves intersect each other at the point (150, 15). A price floor of $10 per unit will result in a rev: 05_07_2018 Multiple Choice shortage of 200 units. surplus of 200 units. No shortage or surplus 50 units being traded.What are the five features of a perfect market competitive?What kind of business is a water refilling station? What problems are solved with the help of a water refilling station and how? How does a water refilling station fit in the competitive market?
- Sally runs a vegetable stand. The following table shows two points on the demand curve for the heirloom tomatoes she sells: Price $3.50 $2.25 Quantity demanded per week 150,000 250,000 Sally's marginal revenue from lowering the price of tomatoes from $3.50 to $2.25 is $ 0.375. (Enter your response rounded to two decimal places.) Lowering the price from $3.50 to $2.25 results in an output effect of $ and a price effect of $. (Enter your responses as whole numbers and include a minus sign if necessary.)Draw a graph of a typical firm and an industry market (with supply and demand). Illustrate and explain what happens in the market if at the initial price, the typical firm is earning an economic profit. Show and explain how the two graphs will adjust toward market equilibrium.When do firms decide to (i) stay in the market, (ii) shutdown the firm's operations, and (iii) exit the market?
- You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What does each burger cost on average if you make 8 burgers?You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What is AVC if you produce 6 burgers?Please graph what the market looks like with a short decrease in demand and what one firm looks like with a short run decrease in demand. Please make sure to graph your answer with all necessary labeling.
- How does a market compete with other firms efficiently to maintain profit in a competitive market over time? Show diagram with shifts in price, cost, quantity, etc.Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario Is the market competitive? There are thousands of ninth and tenth graders in need of geometry tutoring services in Chicago. Of the twenty or so companies in town currently offering geometry tutoring, parents of high schoolers view the quality of each individual tutoring service to be about the same. There are thousands of car dealerships that serve millions of consumers each year. The dealerships vary by location, offerings, and quality, allowing consumers with an array of preferences to find vehicles that match their individual needs. A few major airline companies represent a great majority of total air travel. Consumers consider all different flights to be essentially the same, and comparison shop for the lowest price. The government has granted the U.S. Postal Service the exclusive right to…Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy awatch. Austin pays $900 a month for a Web server and Internet connection. The watches that customers design are made to order by another firm, and Austin pays this firm $120 a watch. Austin has no other costs. The table shows the demand schedule for Austin's watches. Austin is making an economic profit. In the long run, the demand for Austin's watches OA. decreases; incurs an economic loss OB. increases; makes zero economic profit C. increases, increases his economic profit D. decreases; makes zero economic profit OE. decreases; shuts down and in long-run equilibrium, Austin MIER Price (dollars per watch) 200 160 120 80 40 0 Quantity (watches per month) 0 40 80 120 160 200