A firm is making an economic loss of $100,000. This means that: - the firm should...
A firm is making an economic loss of $100,000.
This means that:
- the firm should immediately exit the industry.
- the firm could increase economic profit if its resources were used in a different way.
- the firm is not making an accounting profit.
- the firm's revenues are less than its opportunity costs.
If a firm is making an economic profit of zero:
- it will have unhappy stockholders.
- it cannot make a higher economic profit by changing how it is using its resources.
- it is not making an accounting profit.
- the firm should change to a different line of business.
Homework Answers
- the firm could increase economic profit if its resources were used in a different way.
- it cannot make a higher economic profit by changing how it is using its resources
In the long run economic profit remains at zero
Add Answer to:
A firm is making an economic loss of $100,000.
This means that:
- the firm should...
A firm is making an economic loss of $100,000. This means that: the firm's revenues are...
A firm is making an economic loss of $100,000. This means that: the firm's revenues are less than its opportunity costs. the firm is not making an accounting profit. the firm should immediately exit the industry. the firm could increase economic profit if its resources were used in a different way. If a firm is making an economic profit of zero: it will have unhappy stockholders. it is not making an accounting profit. the firm should change to a different...
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are making an economic Today, firms in a perfectly competitive market run, firms will profit. In...
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ID: T because the long-run economic 38. Monopolistic competition is simlar to because the way the...
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I need help with parts C and F ONLY.
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A firm should shutdown only if O marginal profit is zero. O accounting profit is negative....
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A firm is making an economic loss of $100,000. This means that: the firm's revenues are less than its opportunity costs. the firm is not making an accounting profit. the firm should immediately exit the industry. the firm could increase economic profit if its resources were used in a different way. If a firm is making an economic profit of zero: it will have unhappy stockholders. it is not making an accounting profit. the firm should change to a different...
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...
ID: T because the long-run economic 38. Monopolistic competition is simlar to because the way the firm maximizes its profit. proft i s zero; similar to b. monopoly perfect competition Exhibit 10-5 Price MC ATC 39. To maximize profit in the short run, the monopolistic competitive firm in Exhibit 10-5 should a. produce 8 units b. shut down c. produce 10 units d. exit 40. To maximize profit in the short run, the monopolistic competitive firm in Exhibit 10-5 should...
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I need help with parts C and F ONLY.
c.) In the long run, a firm operating in a perfectly competitive market will earn zero accounting profit, but can still earn positive economic profit d.) In the short run, a firm should exit the industry if its marginal costs exceeds its marginal revenue e.) In the long run, some firms will exit the market if price is below average total cost. f.) A perfectly competitive firm will consider fixed costs...
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