We would expect an industry to expand if firms in that industry are earning economic profits. earning accounting profits. earning normal profits. breaking even.
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We would expect an industry to expand if firms in that industry are
earning economic profits.
earning accounting profits.
earning normal profits.
breaking even.
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- What would change if you found a new niche market to sell your product and your sales jumped to $200,000 and your input costs went up to $30,000? What is your accounting profit? Economic profit? Should you stay in business? Would other firms enter into the market? please show work!You own a business and make $100,000/year. You pay yourself $50,000 and have input costs of $20,000. You could rent the land for $5,000. Starting salary at a competing firm is $100,000. What is your accounting profit? Economic profit? Should you stay in business? Would other firms enter into the market? What would change if you found a new niche market to sell your product and your sales jumped to $200,000 and your input costs went up to $30,000? What is your accounting profit? Economic profit? Should you stay in business? Would other firms enter into the market?Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?
- A company has a linear total cost and a linear total revenue, where the slope of the revenue line is greater than the slope of the cost line. How many of the following will allow the firm to reduce the level of their break-even point? (i) Increase their selling price (ii) Increase their output (iii) Increase their fixed costs (iv) Decrease variable costs a.Four b.One c.Two d.Three e.NoneMany firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down? Think of recent examples.Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
- The Watts Brewing Company owns valuable water rights that allow it to produce better beer than competitors. The company sells its beer at a premium and reports a large profit each year. Is this firm necessarily making economic profits? Explain.Explain how economies of scale keep new firms from entering an industry in which firms are earning economic profits.The elimination principle is the idea that profits are eliminated by firms exiting the industry and losses are eliminated by firms entering the industry. true false
- Consider the following information about a business Rodriguez opened last year: price = $5; quantity sold = 15,233; implicit cost = $18,000; explicit cost = $33,000. What was Rodriguez's accounting profit and economic profit? Show your work.Confused on how to solve the graph and the blanks First blank: suffer economic losses or earn economic profits Second blank: Shift leftward or remain unchanged or shift rightward Third blank: A high-cost industry An increasing-cost industry A low-cost industry Or a decreasing-cost industryINDUSTRIAL ECONOMICS Is higher Industry concentration always associated with higher profitability? Explain your answer.