Economic profits by potential customers

When you lease a building for five years and rapidly achieve economic profits since it is located conveniently for potential customers: (1) you could capitalize some of these pure profits when you sold your business along with a sublease at the ending of the second year. (2) your rent would mostly certainly be raised when the lease ran out. (3) the owner evidently underestimated the building’s location rents. (4) similar firms most likely would soon open for business near you. (5) All of the above.

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

View Complete Question

Related Questions in Microeconomics

Q : Principal-Agent Problems Which of the

Which of the following is not an illustration of the principal-agent problem? (1) The real estate agent vends your house for less than you settled to. (2) The salespeople of the luggage company book first class seats whenever traveling out of town and write off the ex

Q : Economic good becomes an economic bad

Economic good becomes an economic bad whenever consumption is expanded into an area where: (1) Marginal returns are reducing. (2) Sellers experience an honest hazard. (3) Marginal utility is negative. (4) Buyers suffer from unfavorable choice. (5) Exc

Q : Unitary price elasticity of demand The

The output of RoboMaids consequent to the point where demand has unitary price elasticity is approximately: (i) 2,000 robots weekly. (ii) 4,000 robots monthly. (iii) 6,000 robots monthly. (iv) 10,000 robots monthly. (v) 13,000 robots monthly.

Q : Needs of families by poverty line

The official “poverty line” computed by the federal government is the income level needed to meet the perceived fundamental needs of families along with differing characteristics as size, location, etc. Therefore, it is based on: (1) a rel

Q : Shifting in market demand curve The

The expectations which proposed new tariffs will be enacted which will raise the future prices and accessibility of digital cameras will: (1) Not affect the present demand for cameras. (2) Cause consumers to move up all along their market demand curve. (3) Not influen

Q : Zero or negative marginal utility of a

Whenever the marginal utility of a good becomes negative or zero: (i) Goods are transformed to the bads. (ii) Net utility reaches the maximum and then declines. (iii) The maximum total advantages have been squeezed from good. (iv) People are unwilling

Discover Q & A

Leading Solution Library

Avail More Than 1429793 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1939242
Asked

3,689

Active Tutors

1429793

Questions
Answered

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

Submit Assignment