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 75 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
Wow, this really help

ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

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?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

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?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

The cartoonist’s hyperbole makes an excellent commentary on the social class disparity of our ... The cartoonist’s hyperbole makes an excellent commentary on the social class disparity of our ...
A typical ratchet used to rotate a socket. A ratchet makes a ratcheting noise when it is being ... A typical ratchet used to rotate a socket. A ratchet makes a ratcheting noise when it is being ...
Economic and Social Development Economic and Social Development
Economic and Social Development Economic and Social Development
How to choose the right payment plan with changing conditions (Question 1) How to choose the right payment plan with changing conditions (Question 1)
Kyoto Protocol encourages industry to innovate and reduce the level of emissions Kyoto Protocol encourages industry to innovate and reduce the level of emissions
Video: Electrical changes in the heart

For a complete list of videos, visit our video library