Normal accounting profit with zero economic profit

Accounting profits are normal along with zero economic profits while there is: (1) monopoly power which has not yet been capitalized. (2) unpredicted short run surges within demand for a good. (3) uncertainty therefore unpredictable events arise commonly. (4) important new innovation. (5) long run competitive equilibrium.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Law of Supply Law of Supply : Supply

Law of Supply: Supply means the goods provided for sale at a price throughout a particular period of time. This is the capacity and intention of the producers to gen

Q : Jeremy Bentham utilitarianism Possible

Possible utilization of a ‘felicific calculation’ to recognize punishments for the crimes was derived from: (1) Medieval scholasticism. (2) Say’s Law. (3) Gresham’s Law. (4) Marshall’s Maxim. (5) Jeremy Bentham&r

Q : Amount of goods or resource under

The amounts of a good or resource which sellers will offer beneath different conditions are termed as its: 1) Supply. (2) Availability. (3) Market. (4) Equilibrium. (5) Surplus. Find out the right answer from the above options.

Q : Why indifference curve is convex Why

Why the indifference curve is convex to origin?

Q : Short-run supply curve of the firm For

For a competitive firm the short-run supply curve is the: (w) marginal cost curve which is above the average total cost curve. (x) marginal cost curve which is above the average variable cost curve. (y) upward sloping part of the marginal cost curve.

Q : Break even and zero economic profit at

Within the long run, after HoloIMAGine’s holographic technology patents lapsed moreover entry and exit became probable in this market, therefore HoloIMAGine would be expected to: (w) carry on to reap economic profits. (x) break even and experien

Q : Constant cost industries In

In constant-cost, the purely competitive industries: (w) total cost is constant at every output. (x) marginal cost is constant at each output. (y) number of firms is constant at every output. (z) long-run supply price is uninfluenced by output. <

Q : Determine demand when total revenue and

When raising ticket prices for Brad Paisley concert tickets raises total ticket revenue, in that case the demand for the concert tickets: (i) perfectly price inelastic. (ii) relatively price inelastic

Q : Define Oligopoly and its characteristics

Explain the term Oligopoly? Also explain its Characteristics?

Q : Normative Criteria for Income

The most compatible along with capitalism of the normative criteria for income distribution, which is the: (1) contribution standard. (2) gold standard. (3) needs standard. (4) balanced standard. (5) equality standard.

Discover Q & A

Leading Solution Library

Avail More Than 1434002 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1930739
Asked

3,689

Active Tutors

1434002

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment