“Economic profit” is a theoretical concept used to help explain the behavior of firms in competitive...
“Economic profit” is a theoretical concept used to help explain the behavior of firms in competitive markets. Suggest ways in which this concept can actually be measured.
Homework Answers
Add Answer to:
“Economic profit” is a theoretical concept used to help explain
the behavior of firms in competitive...
Explain how the concept of “economic profit” might help explain the rationale for the government’s granting...
Explain how the concept of “economic profit” might help explain the rationale for the government’s granting of monopolies to those firms that protect their product with a patent.
Explain how the concept of “economic profit” might help explain the rationale for the government’s granting...
Explain how the concept of “economic profit” might help explain the rationale for the government’s granting of monopolies to those firms that protect their product with a patent.
In perfectly competitive markets long term economic profit is zero. If so, why firms bother to...
In perfectly competitive markets long term economic profit is zero. If so, why firms bother to enter such market? Explain this in detail
If firms in a perfectly competitive industry are earning an economic profit and new firms enter...
If firms in a perfectly competitive industry are earning an economic profit and new firms enter the industry, then A) the new firms must incur an economic loss. B) the existing firms' economic profit decreases. C) consumer surplus decreases. D) there must be external benefits to consumption of the good. E) Both answers A and B are correct.
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In...
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
If perfectly competitive firms are making an economic profit, then A) new firms will enter the...
If perfectly competitive firms are making an economic profit, then A) new firms will enter the market. B) the market cannot be in either a short-run or a long-run equilibrium. C) the market must be in long-run equilibrium but cannot be in a short-run equilibrium. D) the market might be in a long-run equilibrium but not a short-run equilibrium. E) some firms will exit the market.
In which way are contestable markets different from markets that are perfectly competitive? Firms have a...
In which way are contestable markets different from markets that are perfectly competitive? Firms have a positive economic profit in the long run. There is imperfect information-some firms have access to information while others do not. Firms charge a price that does not equal marginal cost. There are a few firms in the industry. This question makes no sense because there are no differences between contestable markets and markets that are perfectly competitive.
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be su...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
The Prisoner's Dilemma utilizes game theory to explain behavior of firms in: Markets characterized by natural...
The Prisoner's Dilemma utilizes game theory to explain behavior of firms in: Markets characterized by natural monopoly. Monopoly markets. Perfectly competitive markets. Monopolistically competitive markets. Oligopoly markets At 500 units of output, total costs = $50,000 and total variable cost = $5,000. What does average fixed costs (ATC) equal at 500 units? $45,000 $50. $100. $90. Statement 1: Marginal cost pricing occurs when the market price of a good is equal to the marginal cost of the last unit of...
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a...
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium occurs more quickly for competitive industries than for monopolists. O False
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
In which way are contestable markets different from markets that are perfectly competitive? Firms have a positive economic profit in the long run. There is imperfect information-some firms have access to information while others do not. Firms charge a price that does not equal marginal cost. There are a few firms in the industry. This question makes no sense because there are no differences between contestable markets and markets that are perfectly competitive.
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
The Prisoner's Dilemma utilizes game theory to explain behavior of firms in: Markets characterized by natural monopoly. Monopoly markets. Perfectly competitive markets. Monopolistically competitive markets. Oligopoly markets At 500 units of output, total costs = $50,000 and total variable cost = $5,000. What does average fixed costs (ATC) equal at 500 units? $45,000 $50. $100. $90. Statement 1: Marginal cost pricing occurs when the market price of a good is equal to the marginal cost of the last unit of...
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium occurs more quickly for competitive industries than for monopolists. O False
Most questions answered within 3 hours.
-
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 29 seconds from now -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 2 minutes ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 3 minutes ago -
Why are polymers not typically casted into products?
asked 20 minutes ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 36 minutes ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 25 minutes ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 28 minutes ago -
Along an aggregate supply curve, if the level of output is less
than the natural level...
asked 29 minutes ago -
By 2025, annual consumption in emerging markets will total $30
trillion and contribute more than ________...
asked 34 minutes ago -
At what point does reformation cease to be a viable option for
those who are oppressed...
asked 38 minutes ago -
Place letters corresponding to amounts in the proper order for
lightest to heaviest samples:
a) 2100...
asked 42 minutes ago -
Consider the multicore processor with 6 heterogeneous cores
labelled C1, C2, C3, C4, C5, and C6....
asked 44 minutes ago