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A:
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A: Answer in step 2.
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Q: How do you define 'profit
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Q: Economic profit is
A: To find : What is economic profit
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Q: Explain profit ?
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Q: Explain how to determine a firm's cost of production and economic profit
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A: Given;
Q: Concept: Revenue of a Firm Farmer Jones grows oranges in Florida. Suppose the market for oranges is…
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What is Economic profit
Economic profit refers to the profit that obtained by deducting the implicit cost or opportunity cost from the accounting profit. This is shown below.
Accounting profit is obtained by deducting the total explicit cost from the the total revenue. This is shown below.
Step by step
Solved in 2 steps with 3 images
- What is the relationship between economies of scale and the level of market competition?Use the graph above to answer these questions: What is the profit-maximizing level of output? What is the economic profit? What is the per-unit amount of profit at the profit-maximizing level of output?What is the definite rule to maximize profit?
