--%>
Assignment Help - homework help

Describe why do firms enter an industry

Why do firms enter an industry while they know that in long run economic profit will be zero?

Firms enter an industry while they expect to earn economic profit.  These short-run profits are adequate to encourage entry.  Zero economic profits in the long run imply normal returns to the factors of production, by including the labour and capital of the owners of firms.  For instance, the owner of small business might experience positive accounting profits before the foregone wages from running the business are subtracted from these profits.  If the revenue minus other costs is just equivalent to what could be earned elsewhere, then the owner is indifferent to staying in business or exiting.

   Related Questions in Biology

  • Q : Mechanical digestion What do you mean

    What do you mean by mechanical digestion? In arthropods, molluscs, earthworms, vertebrates and birds, which organ participates respectively in this type of digestion?

    		•
  • Q : Define the term plasmid Briefly define

    Briefly define the term plasmid? And also define the term recombinant DNA?

    		•
  • Q : Fecundation and end of meiotic process

    State relation between fecundation and end of the meiotic process during the oogenesis?

    		•
  • Q : Cutaneous and diffusion respiration

    Write the difference between respiration through cutaneous and diffusion respiration? Explain if blood participate in the cutaneous respiration?

    		•
  • Q : Punctuated|Equilibrium Model-Group -

    Temporary groups with deadlines do not seem to follow the previous model. Studies indicate that they have their own unique sequencing of action (or inaction): I.            Their first meeting sets the group's direction. II.&n

    		•
  • Q : Ribosomes in secretory cells-free

    Which are the more plentiful ribosomes in secretory cells-the free cytoplasmic ribosomes or such related with the rough endoplasmic reticulum?

    		•
  • Q : Define Local Area Network or LAN Local

    Local Area Network (LAN): It supplies networking capability to a group of computers in close immediacy to each other like in an office building, a school, or a home. The LAN is helpful for sharing resources such as printers, files, games or other appl

    		•
  • Q : What is arch reflex What do you mean by

    What do you mean by the arch reflex?

    		•
  • Q : Chordate class Which chordate class is

    Which chordate class is considered as an example of transition of vertebrates from aquatic to the dry land environment?

    		•
  • Q : Sponges-beings-fundamental

    How are sponges exemplify according to illustration of representing beings, fundamental morphology, kind of symmetry, embryonic (or germ) layers and coelom, respiratory system, digestive system, excretory system, circulatory system, nervous system and

    		•