How about zero economic profit

Assignment Help Microeconomics
Reference no: EM13700123

Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?

Reference no: EM13700123

Questions Cloud

Study of automobile demand are relevant to managers : Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers?
Less-developed-countries and the developed countries : The relationship between the less- developed- countries and the developed countries in the evolution of international trade has always been a bit strained. Discuss this relationship, including policies adopted and /or advocated by each group to "help..
Explain why quality became the most important issue : Explain why quality became the most important issue facing American business in the 1980s. In addition to economic competition from Japan, what other factors may have contributed to the importance that quality has assumed?
Identify a market which you feel is perfectly competitive : Identify a market which you feel is perfectly competitive. The firms in this structure are considered price takers, are the firms in the market you chose all selling their product at the same price? Why or why not?
How about zero economic profit : Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?
Identify instance where price control is used in our markets : Identify an instance where a price control is used in our markets. Why do you think this price control exists? Also discuss the possible negative effects it may have on the market
What is the socially optimal level of output : A perfectly competitive industry has an inverse demand for its output given by p Q = ? 100 , and its supply function is given by MC Q = + 30 . The process of making Q also generates pollution, g, in the amount g Q = ? 0.5, and the total external cost..
Calculate the profit-maximizing price : A pharmaceutical firm has a monopoly on a new class of vasodilator. The market demand is given by P=240-0.01*Q, and thus MR=240-0.02*Q. The monopolist's marginal cost is constant and equal to 20. Calculate the profit-maximizing price.
Calculate total surplus of the market with the price ceiling : A market has a demand curve described by P=30-Q, a supply curve described by P=16+Q, and a price ceiling of 20. Calculate the Total Surplus of the market with the price ceiling?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the consumer price index cpi how is it measured

What is the consumer price index (CPI)? How is it measured? What are the pros and cons of using the CPI as a measure of the cost of living?

  What objectives do unions serve

What objectives do unions serve? Are there other, more economically efficient, methods to achieve these objectives? What might those methods be?

  What is a product or service that chevron offers

What is a product or service that Chevron offers? Create a graph representing the current market it. Use the current market price of one of their products for the Ep and Eq. Name all elements in the graph including, but not limiting to: supply, deman..

  Plot the supply and demand curves on a plot with quantity

Plot the supply and demand curves on a plot with "Quantity of houses" on the horizontal axis, and "Price of houses" on the vertical axis.

  Define the profit-maximizing quantity

If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is____ unit(s).

  How to use price regulation of pharmaceutical compony

In developing a vaccine for a dangerous new strain of flu virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it equal to zero). The pharmaceutical..

  Herfendahl index ratio

An industry is composed of 20 firms, all with equal sales. The Herfendahl Index ratio in this industry is a. 1000 b. 500 c. 800 d. This cannot be determined from the information given.

  Provide a brief company and product description

Provide a brief company and product description and describe the characteristics of your chosen product that differentiate the product in the marketplace.

  Determine the firm price-output and profits

You are the manager of a monopolistically competitive firm. Your demand function is: p=25-Q, and your cost function is : TC=5Q. Respectively MR=25-2Q and MC=5. Determine the firm price, output and profits. Explain. What will happen in the market in t..

  Elements of fiscal policy

Elements of fiscal policy that tend to have to move the budget toward surplus as the economy expands and toward deficit as it contracts are called?

  One hundred compressors of 200 hp rating are being

one hundred compressors of 200 h.p. rating are being considered for purchase by the state highway department. the

  What must rebate-determining time of 28 minutes be changed

a muffler company advertises that you will receive a rebate if it takes longer than 28 minutes to replace your muffler.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd