This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why would a firm choose to remain in an industry in which it makes an economic profit of zero? ... (Read 67 times)

saliriagwu

  • Hero Member
  • *****
  • Posts: 537
on: Jul 1, 2018
Why would a firm choose to remain in an industry in which it makes an economic profit of zero?
 
  What will be an ideal response?

Question 2

A monopoly always operates in the inelastic portion of its demand curve.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nanny

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jul 1, 2018
Answer to Question 1

Making an economic profit of zero does not mean that the firm is not making any money. It means that it is covering all its costs, including opportunity costs. This means that all resources employed are earning just as much as they would in their next-best use, and thus that there is no gain from moving them to their next -best use.

Answer to Question 2

False. A monopoly never operates in the inelastic portion of its demand curve. Marginal revenue is negative in this region.


saliriagwu

  • Member
  • Posts: 537
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

economic question economic question
economic question economic question
economic question economic question
economic question (having trouble) economic question (having trouble)
economic question (having trouble) economic question (having trouble)
Contributions to political parties , by economic sector 2020 Contributions to political parties , by economic sector 2020
Video: Protein catabolism (Krebs cycle) and Protein anabolism (protein synthesis)

For a complete list of videos, visit our video library