Difference between accounting and economic profit

Assignment Help Business Economics
Reference no: EM133124933

With the help of an example explain the difference between accounting and economic profit. Building on your answer then explain why a perfectly competitive firm would operate in the long run even if it makes 0 profit.

Reference no: EM133124933

Questions Cloud

How much management have to raise from external activities : How much will management have to raise from external activities (shareholders and lenders) to proceed with an $800,000 investment in non-current assets
Discuss the problem of reverse logistics in ec : Discuss the problem of reverse logistics in EC. What types of companies may suffer the most? Under what situations might the outsourcing of EC services not be d
Develop under communism : Discuss how communist Russia was started in 1917. What was the intent? How did the economy develop under communism?
Climate change by excessive carbon emission : "The capacity of the earth's atmosphere in absorbing carbon emission without a serious climate effect is a common resource. Now, we are approaching the tragedy
Difference between accounting and economic profit : With the help of an example explain the difference between accounting and economic profit.
What the expected next period future exchange rate : Suppose that there are no restrictions on international asset transactions, and people are risk neutral. For each of the following cases, if the values for dome
What was the goods available for sale : Super Discounter Inc. is a merchandizer who had inventory at the beginning of the year of $750,000. What was the goods available for sale
Why has globalization caused more inequalities : Why has globalization caused more inequalities? This question is related about international economics, and why did globalization increase more inequalities in
Postmerger prices in the wholesale market : Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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