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What is zero economic profit?
Stagnation or zero growth as long as they aren't losing money.
Should a company go out of business if they are making zero economic profit?
no
Why accounting profit is higher than economic profit?
First of all, we need to understand what is explicit cost and implicit cost. Explicit cost mean real expenses, while implicit cost mean opportunity cost. In accounting profit, we only minus explicit cost, while in economic profit we minus explicit cost and implicit cost. therefore accounting profit is higher than economic profit.
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
Can a monopolistic competitive firm earn long run profit?
In the long run, if a firm is making a profit more firms will enter. This will cause profit to drop. Firms will eventually drop out because of this and economic profit will makes it way to zero(a result of the invisible hand).
Is economic profit equal to accounting profit?
no
Differentiate between normal profit and economic profit?
Economic profit is when revenue exceeds total cost of inputs. Normal profit, on the other hand, is net profit less costs.
What is the economic system based on private ownership investment and profit?
Capitalism is the economic system based on private ownership and profit.
What are four principles of the US economic systems?
The four Pricipals of the Economic Systems are:-Private Property-Freedom Of Choice-Profit-Competion
Is economic systems based on profit and loss?
The economic systems is based on profit and loss since they reflect the values of the economy in place.
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.
Evaluate Google Inc. Which theories of profit accounts for Googles economic profit How does opportunity cost relate to economic profit?
What therories are used in google Inc. for employee statisfactions and gains
