Explain how normal profit and abnormal profit differ, Microeconomics

Assignment Help:

Explain how normal profit and abnormal profit differ.

Normal profit (breakeven) - which must contain commentary on the inclusion of opportunity costs. Abnormal profit should be explained as revenue above and beyond economics costs, i.e. a profit above what is essential to keep the firm in the market in the LR.

 


Related Discussions:- Explain how normal profit and abnormal profit differ

Indifference curve, Jane receives utility from days spent travelling on vac...

Jane receives utility from days spent travelling on vacation domestically(D) and days

Inflation, inflation and policies that are used to combat it

inflation and policies that are used to combat it

Determine the action keep the price above market equilibrium, What actions ...

What actions could a government take in order to keep the price above market equilibrium? There are four basic possibilities here; 1) Minimum price;  2) A tax on the good

Tax abolition, In the case of a tax abolition on food staples, what are the...

In the case of a tax abolition on food staples, what are the short run and long run effects?

Oppurtunity cost, 1. Assume that Malaysia can produce cencaluk at 25 bottle...

1. Assume that Malaysia can produce cencaluk at 25 bottles per worker and belacan at RM5 per worker. Assume that Indonesia can produce 10 bottles of cencaluk per worker and 20 pack

Balancing formulas, How do I balance this chemical equation: MgSO4*5H2O

How do I balance this chemical equation: MgSO4*5H2O

Explain the price inflation and wage inflation, What is the difference betw...

What is the difference between Price inflation and Wage Inflation?  Price inflation is the rate of enhance in the prices of goods and services whereas the wage inflation is ra

Duopoly, write characterstics of duopoly

write characterstics of duopoly

Explain low-quality beef , Suppose that you can produce high-quality beef a...

Suppose that you can produce high-quality beef at $3 per pound and sell it for $8 per pound. Low-quality beef costs $1 to produce but only sells for $4 per pound. If quality is uno

Macechj, according to Tobin 1993,examples of Keynesian unemployment include...

according to Tobin 1993,examples of Keynesian unemployment includes situation where

Write Your Message!

Captcha
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