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When the price that an item brings is more than the cost of bringing the item to market. I spent a dollar to make a widget, and 10 cents to put the widget on sale, advertise it, sell it and deliver it. It sells for $2. I have a profit of 90 cents on each widget.
What else can I help you with?
What occurs when revenue is greater than expenses?
profit
What is dollar profit?
Whole dollar profit is the amount of profit that has been rounded off to the nearest dollar. A profit is any type of financial gain that occurs after expenses have been deducted from the amount earned.
What is whole dollar profit?
Whole dollar profit is the amount of profit that has been rounded off to the nearest dollar. A profit is any type of financial gain that occurs after expenses have been deducted from the amount earned.
Why does profit occur?
Profit occurs when you sell something for more than it costs to produce. If it costs five dollars to make a deck of cards but you sell it for eight dollars, you have a three-dollar profit.
Is it true of false that profit is the difference between earned income and costs?
True. Profit is defined as the difference between earned income (revenue) and costs (expenses). If income exceeds costs, a profit is generated; if costs exceed income, a loss occurs.
The price charged by a profit-maximizing monopolist occurs at?
the point where the marginal cost curve intersects the marginal revenue curve
What is abnormal profit?
Abnormal profit, also known as economic profit, refers to the excess profit a firm earns over and above the normal profit, which is the minimum return necessary to keep resources in their current use. This profit occurs when total revenue exceeds total costs, including both explicit and implicit costs. Abnormal profit indicates that a firm is outperforming its competitors and may attract new entrants into the market. It is often seen as a sign of market power or a competitive advantage.
Profit maxiamisation in a perfect economy?
Profit maximization occurs when the firm produces /sets their price at the intersection of the marginal cost curve and the horizontal MR DARP curve (marginal revenue, demand, average revenue, price)
What is a business makes a profit when its costs of production are less than its what?
A business makes a profit when its costs of production are less than its revenues. Revenues are generated from sales of goods or services, and when these exceed the expenses incurred in producing them, the business earns a profit. Essentially, profitability occurs when income surpasses costs.
What in an economic system in which most economic activity occurs in the private sector where business is conducted by individuals or organizations in order to make a profit?
capitalism
Is an economic system in which most economic activity occurs in the private sector where business is conducted by individuals or organizations in order to make a profit?
capitalism
Explain profit maximization of a firm under TR-TC approach and mr-mc approach?
Profit maximization occurs when a firm achieves the highest possible profit by balancing total revenue (TR) and total cost (TC). Under the TR-TC approach, a firm maximizes profit by producing the quantity where the difference between TR and TC is greatest. In the MR-MC approach, profit maximization occurs where marginal revenue (MR) equals marginal cost (MC); producing beyond this point would result in higher costs than revenues. Both approaches lead to the same optimal output level but use different methods to arrive at that conclusion.
