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Economic profits and losses are true market signals because they?

because they convey info about rewards people should anticipate experiencing by shifting resources from one activity to another


In which case do investors buy stock in expectations of higher profits?

In a bull market, investors buy stock in expectation of higher profits.


Why must profits be zero in long-run competitive equilibrium?

The short answer: entry of new firms and exit of old ones. If profits are positive, new firms will enter the industry, piling in until they compete away all these profits. If long-term profits are negative, firms will exit until the price rises enough so that the firms who stay in the market can break even.


What were the positive and negative results of the cotton boom?

Positive would be: increased profits for raw goods. Negative would be: increased costs for making profits as in slave ownership


Are forex signals useful in making profits?

Forex signals can be useful not only in making profits, but also in learning how to make profits consistently. Signal providers you shoul dask for their live myfxbook account. This shows how well they trade, percent of wins/losses, live money, growth of account, etc.


What does profits stemming from market power reflect?

high prices


What are the types of strategic analysis?

To maximise on profits and market gap


Explains why producers conduct market research?

Market research helps producers earn more profits.


Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?

A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.


How is price determined in each market structure in terms of maximizing profits?

Price of any commodity in the market is estimated depending on the condition of the market. The price cannot be more than what the seller is willing to provide but profits can be maximized through marketplaces adjusting according to the reality of the market.


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


Do market and supply curves have negative slopes?

Do market supply curves have negative slopes