Why would anyone run a business if he couldn''t make a

Why would anyone run a business if he couldn''t make a profit

Reference no: EM131181671

"Why would anyone run a business if he couldn't make a profit?" This is a frequent response to economists' idea that all firms in a particular market make zero "economic profits."

a. In your own words, explain what economists mean by zero economic profits and why an entrepreneur would choose to operate a perfectly competitive business.

b. Explain why perfectly competitive firms are assumed to make zero economic profits in the long run.

Reference no: EM131181671

Questions Cloud

Do you think that these situations are inefficient : Do you think that these situations are inefficient? Do you think that government policy should play a role in eliminating path dependence and network externalities?

Legal issues in information security-incident response : Legal Issues in Information Security and Incident Response IP Unit 1 (ITAS665 -1604C -01) Please provide information that has been certified as not similar to anything else on the internet or schools. I will not accept anything above 20% similari..

What do you think is most relevant insight from the model : How useful do you think the model of a perfectly competitive market presented in this section is in explaining economic behavior in the real world? What do you think is the most relevant insight from the model?

How contracting with the peo affect employee relationships : How can Mathis be sure that the PEO is reputable and that his company and employees will receive real value for the money?

Why would anyone run a business if he couldn''t make a profit : "Why would anyone run a business if he couldn't make a profit?" This is a frequent response to economists' idea that all firms in a particular market make zero "economic profits."

Should government policies promote competition : Do you think that there could be a viable alternative to an economy based on competitive pressures? Should government policies promote competition, cooperation, neither, or both?

Data communication information : Present an of the origin and of the concept. Describe the use of and toward the concept. Explain the strengths disadvantages) of the concept. Describe the prevailing view of about the likely future of the concept. Research and cite at least six (6..

What is the marginal cost of the eighth pair of mittens : Create a table relating the number of hours worked to the total number of pairs of mittens produced, and graph the total product curve for the production of pairs of mittens. Label clearly.

User Account

All Pages