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 72 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
Thanks for the timely response, appreciate it

bigcheese9

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
Only 750 mountain gorillas remain in two tiny forests in East Africa. Only 750 mountain gorillas remain in two tiny forests in East Africa.
economic question economic question
economic question economic question
economic question economic question
economic question economic question
Video: Fermentation - When Oxygen Is Absent, Pyruvate to Lactate & Pyruvate to Ethanol

For a complete list of videos, visit our video library