Normal profit
Normal profit signifies zero economic profit. Explain why?
Expert
Answer: Assume that the existing firms are earning over normal profits. Attracted by the positive gains, the new firms enter in industry. The market supply rises and the price comes down. New firms carry on entering and the price persists to fall till economic profits are decreased to zero.
In condition of losses, firms begin leaving the industry, supply downs and prices begins going up and all this carry on till losses are wiped out. Remaining firms in industry then once again earn only normal profits or zero profit.
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When yearly per capita income increases from $13,500 to $26,500 and custom car sales increase from 100,000 to 200,000, by using the arc elasticity formula, then the income elasticity of demand is: (i) 0.50. (ii) 0.75. (iii) 1.00. (iv)
Capital expenditure: Any expenditure which will lead to formation of an asset or reduction in liability. This is financed out of capital receipts of government. Illustrations: Expenses on construction of roads, canals, bridges, grant of loans by the c
Whenever Janet and Bob realize that Janet is a better cook and Bob is better at cleaning the lawn, dividing such chores up according to skill is known as: (1) Gains from trade (2) Brute force allocation (3) Division of labor (4) Affirmative action. Q : Perpetuity bond in fixed cash flows A A perpetuity is a: (w) financial asset which provides its owner eternal life. (x) perpetual motion machine which lasts forever. (y) bond which pays its owner an annual income forever. (z) profitable share in an established corporation. Q : Problem related to rises japanese yen Normal 0 false false
A perpetuity is a: (w) financial asset which provides its owner eternal life. (x) perpetual motion machine which lasts forever. (y) bond which pays its owner an annual income forever. (z) profitable share in an established corporation. Q : Problem related to rises japanese yen Normal 0 false false
Normal 0 false false
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This figure in below is demonstrates the operations of a profit-maximizing pure competitor into the: (1) market period. (2) short run. (3) long run. (4) super long run since this can alter technology. (5) shutdown range of production. Discover Q & A Leading Solution Library Avail More Than 1428616 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1960887 Asked 3,689 Active Tutors 1428616 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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