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Economic function of profits and losses?
Economic profit will never exceed accounting profit. The accountant will calculate total cost using only explicit costs (basically a transfer of money) that the firm makes. On the other hand, .
Will a firm that owns its own capital equipment will have the exact same long run cost function as a firm that rents capital if both firms have the same production function?
No a firm that owns its own capital equipment will not have the exact long run cost function as a firm that rents capital even if they both have the same production function.
Distinguish between industry demand and firm demand?
Industry demand is subject to genera economic conditions. Firm demand is determined by economic conditions and competition
The size and the importance of the finance function in a business firm depends primarily on what?
size of the firm
The circular flow of economic activity sHow is the interdependency of firm and household decision making?
The circular flow of economic activity shows the interdependency of firm and household decision making.TrueFalse TRUE
What are examples of typical economic decisions made by the managers of a firm. determine whether is an example of what how and when?
following are examples of typical economic decisions made by the managers of a firm. determine whether is an example of what, how, and when?
What is the economic function of the environment?
Answer
What is the Difference between Normal profit and Economic Profit?
In economics, normal profit is often called the break-even point. It is the level of profit where all of the costs of your business, including the salary of the CEO, are covered. When a firm has normal profit but not economic profit, the total revenue of the firm equals the total cost of the firm. However, if a firm has economic profit, total revenue is higher than total cost.
What is the production function and types of production function?
production function is relation between firm's production and material factors of production
In an economic function what is equity?
In an economic function, equity is when the appointment of resources is considered fair. Government economic functions include providing public services and maintain a national defense.
What is an example of an economic entity?
2) A firm issues periodic reports called:
Critically X-Ray what constitutes the financial objective and economic objectives of a firm?
what constitutes a financial objective of a firm is the goals, long range planning and business. while that of the economic objective has to do with enviromental scanning and swot analsis
