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Why do firms enter an industry when they know that in the long run economic profit will be zero?
Firms enter an industry while they suppose to earn economic profit. These short-run profits are sufficient to encourage entry. Zero economic profits in the long run involve normal returns to the factors of production, as well as the labor and capital of the owners of firms. For instance, the owner of a small business might experience positive accounting profits before the foregone wages from running the business are subtracted from these profits. If the revenue minus another costs is just equivalent to what could be earned elsewhere after that the owner is indifferent to staying in business or exiting.
need to understand some basics of changes in working capital
FEATURES OF A BUDGET a. It is prepared for a specific period. b. It is expressed in quantity or money or both. c. It is a statement describing ob
Q. Introduction of just-in-time inventory management? It has already been observe that a reduction in inventory due to the introduction of just-in-time inventory management ca
What are multinational corporations (MNCs) and what economic roles do they play? A multinational corporation (MNC) can be described as a business firm incorporated in one count
Q. What is Disadvantages of IRR Method ? Disadvantages of IRR Method:- (i) Computation of IRR involves tedious calculations. (ii) Occasionally this method produces more t
Federal Open Market Committee The principle document making body of the Federal Reserve, the FOMC consists of 7 governors of the Federal Reserve System and 12 Federal Reserve D
What is the Ratio uses To compare results over a period of time To measure performance against other organisations To compare results with a target To compare against
Can a corporation have too much working capital? Explain. A firm can have in excess of working capital if it is losing the opportunity to invest in high returning fixed assets
I need help solving problems for learning financial management?
I am facing some problems in my assignment of Cash Management and Inventory Management. Can anybody suggest me the proper explanation for it?
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