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Zero profit does not mean that the entrepreneur does not get anything for his efforts.
a.
maybe
b.
true
c.
both a and b
d.
false
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- In the diagram below, profit is maximized at point ( give a short reason for the answer if possible) a. A b. B c. C d. Dexplain the photo regarding the net profit margin and give insights about it. also, provide a graph for that and explain how you made it. use your own wordsWhat is the difference between accounting profit and economic profit? Select one: a. Accounting profit is always lower because it is actually money. b. The difference is really not important. c. Accounting profit considers explicit financial costs and economic profit doesn't d. Economic profit considers implicit opportunity costs and accounting profit doesn't e. A and D are correct
- You turned down a job at ABC Corp last year that would have paid you $125,000 per year and started your own company. When you calculated your economic profit, it came out at $0. You expect the business will be exactly the same next year. ABC called and said you could still take the job. You should... A. Keep running your company as-is. B. Keep running your company but pay yourself less. C. Keep running your company but pay yourself more. D. Shut down your company and take the job at ABC.Explain how short-run economic profits become long-run economic costs. When profits fall to zero, are owners worse off? Why or why not?Economic profits may result from: a. innovation Ob. risk taking c. exploiting market inefficiencies d. all the above e. a and b
- Explain the concepts of revene, costs, and profitexplain the photo regarding the net profit margin and give insights about it. use your own wordsFamily Mart like inner city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this? It is clear that businesses operate in the short run, but do they ever operate in the long run? Discuss. What are the different type of costs incurred in the short run and in the long run?
- Tim is thinking of opening a garment store. He estimates that it would cost $270000 per year to rent the location and buy the merchandise. In addition, he would have to quit his $63000 per year day job. Tim estimates he can sell $315600 worth of garments in a year. a. What will be the accounting profit and economic profit for Tim? b. If you are an economist, should you suggest opening the store? Why?How do you define 'profit'?2. Do the following 4 businesses have a positive profit? Should they shut down or not? Circle the correct answer. a. TR = $300 TC= $600 TFC=$350 TVC= $250 %3D %D 0000 Positive Profit or Loss Shutdown or Keep Operating b. P=$4.50 ATC=$4.00 AVC=$3.50 %3D Positive Profit or Loss Shutdown or Keep Operating c. TR = $800 TC= $600 TFC= $200 TVC= $400 %3| %3D Positive Profit or Loss Shutdown or Keep Operating d. P $7.00 ATC= $9.00 AVC= $8.00 %| Positive Profit or Loss Shutdown or Keep Operating
