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Monopolists are guaranteed to earn a positive economic profit because they are the only seller in their industry.?
Monopolists can often earn positive economic profits due to their market power, which allows them to set prices above marginal costs without competition. However, this profit is not guaranteed indefinitely; it may be eroded by potential market entry from competitors, changes in consumer demand, or regulatory interventions. Additionally, monopolists must still consider their costs and the elasticity of demand for their products when determining pricing and output levels. Therefore, while they have the potential for consistent profits, various factors can influence their ability to maintain these profits over time.
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.
Does a monopoly firm always make profit?
NO, it depends on where the ATC (avg total cost) intercepts the MC (Marginal Cost)
How much profit did Tesco make last year?
how much profit did tesco make last year
Does monopolists differ from perfect competitors because monopolists makes a profit?
Not because of that reason but rather a result of the different characteristic of the two market structures. Basis of difference : MONOPOLY PERFECT COMPETITION 1) Number of producer 1 Many 2) Knowledge imperfect perfect 3) Price setter/taker setter taker 4) Nature of goods no substitute/ imperfect sub. homogeneous 5) Barriers to entry very high no 5) Factor mobility Factor immobility perfectly mobile 6) Profits in LR supernormal/normal normal
Monopolists are guaranteed to earn a positive economic profit because they are the only seller in their industry.?
Monopolists can often earn positive economic profits due to their market power, which allows them to set prices above marginal costs without competition. However, this profit is not guaranteed indefinitely; it may be eroded by potential market entry from competitors, changes in consumer demand, or regulatory interventions. Additionally, monopolists must still consider their costs and the elasticity of demand for their products when determining pricing and output levels. Therefore, while they have the potential for consistent profits, various factors can influence their ability to maintain these profits over time.
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.
Is the aluminum refinery profit business or not?
Always assume profit or you'll never get a profit
Why didn't colonist rely on farming to make profit?
it was always wet and rockey bairly any fertil soil
What happens if you don't make a profit?
you dont make a profit
Why is profit maximisation not a reasonable financial objective?
People in business do need to make a profit, or their business will fail, but profit is not everything. Profit made by illegal means can result in going to jail, for example. Profit made by socially destructive means (even if they are legal) harms the society in which you live. Short term profit is not always compatible with long term profit. So, there is a bigger picture.
Does a monopoly firm always make profit?
NO, it depends on where the ATC (avg total cost) intercepts the MC (Marginal Cost)
Why coke did not make profit in India?
coke did make a profit but for some people it did not
How does big ben make a profit?
It doesn't make a profit as it is not a business or company.
What is Sony Ericsson's marketing department mission?
THEIR MISSION IS TO ONLY MAKE PROFIT THEIR MISSION IS TO ONLY MAKE PROFIT THEIR MISSION IS TO ONLY MAKE PROFIT
Did South Africa make profit during world cup?
Yes they did make a profit.
How much profit will Sochi Olympics make?
It is possible that they will make no profit for the host country.
