If a firm is earning zero economic profit, then its accounting profit will:
decrease in the long run.
be positive.
be negative.
increase in the long run.
Ans) the correct option is be positive
When economic profits in an industry are zero, accounting profits will be greater than zero.
If a firm is earning zero economic profit, then its accounting profit will: decrease in the...
3) Suppose a perfectly competitive firm is earning a positive economic profit. Show this situation in a graph. What will happen to economic profits in the long run? Show this situation in a graph. As profits are driven to zero, what happens to consumer surplus? a. b.
ecou 19_ECON2113P03-2010-13768 A firm whose price is below its average cost: Select one: is earning positive economic profit. O b. is earning zero accounting profit. c. is earning negative economic profit. O d. is earning zero economic profit. is just breaking even. page
1. If a firm is earning economic losses, a. it also has an accounting loss. b. the owner could be earning more in some other occupation. c. the firm must go out of business in the short run. d. new firms will want to get into that industry. 2. Economists say that a firm has a normal profit when a. it earns a return of at least 10 percent. b. its accounting profit exceeds its implicit costs. c. it can pay all its variable costs. d....
In the long run, a firm in a perfectly competitive market earns zero economic profit, so the opportunity in the short run to enjoy positive economic profits will cause existing firms to increase output and new firms to enter the market.
In the perfect competition, monopolies competition, monopoly, oligopoly, who is earning an economic profit and accounting profit in the long run and short-run?
In the short run, a perfectly competitive firm earning a negative economic profit A) is on the downward-sloping portion of its AVC. B) is at the minimum of its AVC. C) is on the upward-sloping portion of its AVC. D) is not operating on its AVC. E) can be at any point on its AVC. Answer is C, but I have no idea why C is the correct answer.
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total cost is: TC = a + bQ2. Use only the cost curve given. Determine mathematically the level of output the firm will produce in the long run. Show mathematically if this amount differs from the amount of output the firm would produce in the short run. Explain why a perfectly competitive firm earns zero economic profit in the long run.
QUESTION 17 If Ajax a manufacturing firm is earning zero economic profits A. the revenues for Ajax are sufficient to pay explicit costs but not implicit costs B. the owner of Ajax are earning enough to pay their explicit costs only C. the owner of Ajax will not be able to pay himself D. Ajax will shut down in the long run, but will continue to operate in the short run
this is micro economics
Define Accounting Profit and Economic Profit What is the difference between Accounting Profit and Economic Profit? Does a profitable have to earn a positive economic profit or can it still be profitable while earning a zero economic profit? Answer the above question and respond to at least two of your classmates' posts
In the long-run, if existing firms are earning zero-economic profit, this implies: ATC is greater than price. AFC is less than price. 8 01:02:26 ATC is equal to price. AFC is equal to price.