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Which statements is true about profits in a monopolistically competitive market?
many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term
In what market structures is it possible for Firms to make positive profit in the long run?
Monopoly and Oligopoly are both the only firms that may make positive profit in the long run. Under LONG-RUN MARKET TENDENCY OF PRICE AND ATC: Monopoly P>ATC and Oligopoly P>ATC both will have postive profits, however it possible to turn to zero profits if there isn't capitalization of the profits or any rent-seeking activities or if the market is contestable. But moreover, the answer you're looking for is the above that bother Monopoly and Oligopoly will have positive profit in the long run.
Firms in an industry will not earn long-run economic profits if?
In long run under perfect competition new firms enters into the market and share the profit of existing firms due to free entry and exit .the new firms in the long run enters into the market until they earn profit and leaves the market if they suffer looses. In short if there is free entry and exit
What is the most important determinant of whether or not firms receive economic profits in the long run?
Customer satisfaction.
Entry and exit in a purely competitive industry occur in the. True Or False?
Long run, so that long-run economic profits are zero.
Which statements is true about profits in a monopolistically competitive market?
many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term
Firms in an industry will not earn long-run economic profits if?
In long run under perfect competition new firms enters into the market and share the profit of existing firms due to free entry and exit .the new firms in the long run enters into the market until they earn profit and leaves the market if they suffer looses. In short if there is free entry and exit
Explain how a monopolist can earn supernormal profits in the long run?
in the long run, they dont spend a penny. and they take everybody money, and then they spend it on girls, and then they spend it on ps3, and then they take the tax payers money. all happy yay.
What is the importance of profits?
Profits - Expense = Savings and Investment Profits keep a business going as long is it is more than expense.
Why is an economic advantage for a development nation often disadvantage for developing nation?
Profits for developed nations mean long hours and low pay for workers in developing nations. <----Nova Net
Why is an economic advantage for a developed nation often a Disadvantage for developing nation?
Profits for developed nations mean long hours and low pay for workers in developing nations. <----Nova Net
Why should a business think of cost?
Making profits is what a business is for. A business that doesn't consider how much it must spend in order to earn sufficient profit to remain viable won't stay in business for very long.
Can monopolies make abnormal profits in the long run?
Yes, they can. Since they have a low amount of competitors. This means the competitors won't be eating up their profits. They can exercise the method of putting a higher price at a lower output, therefore people who really need the product are forced to buy it. or example, if Apple was a monopoly they could increase the price of a mackbook to $4000 and people would still buy it and therefore they are increasing their profits. Monopolies could also put some of their profits in research and development so they will be non contestable and the consumers will appreciate the advanced technology therefore their growth will increase. This will increase or maintain their abnormal profits.
Is economic growth more important than economic equality?
yes. Equality is only possible when everybody is equally poor. As long as you reward people for their effort, some will choose to put in less effort than others, and earn less as the result.
Explain in detail Price determination under perfect competition?
Price under perfect competition is determined by the forces of demand and supply of the industry. The price once fixed up by the industry is taken up by all the firms and the firm can sell any number of units at hat price.=The firm may earn normal profits, super normal profits in the short run whereas it earns normal profits in the long run.=
Did the word monopoly come first or did the board game Monopoly coin the word?
The word came first by a long margin, around 400 years.
Will the stock price increase if the accounting change results in higher profits in the next year?
Obviously yes. The market price of a stock is directly dependent on the overall economic condition as well as the financial strength of the company. As long as the company is growing consistently and posting solid profits year after year, the stocks price will theoretically keep growing. Of course, in case of a recession or economic crisis or mergers and acquisitions, this above mentioned logic may not hold true.
