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What does Economic profits in an industry suggest that the industry?
Economic profits in an industry suggest that the industry is operating efficiently and that firms within it are earning returns above the normal profit level. This can attract new entrants, leading to increased competition. Over time, as new firms enter, the supply may increase, which can drive prices down and reduce economic profits, moving the industry toward a long-term equilibrium. Ultimately, sustained economic profits may indicate that firms have a competitive advantage or that there are barriers to entry protecting them from competition.
If a purely competitive constant-cost industry is realizing economic profits you can expect industry supply to?
Remains the same...
When perfectly competitive firms in an industry are earning positive economic profits, how does this impact market equilibrium and the long-term sustainability of the industry?
When perfectly competitive firms in an industry are earning positive economic profits, it attracts new firms to enter the market, increasing competition. This leads to a decrease in prices and profits until they reach a long-term equilibrium where firms earn normal profits. This process ensures the long-term sustainability of the industry by preventing excessive profits and encouraging efficiency.
What will excessive or economic profits induce for a firm in any industry structure?
This will cause a new entry into the market.
Which is the best example of a laissez-faire economic policy that helps business make profits?
limiting regulations on the steel industry-novanet!!
If a purely competitive constant-cost industry is realizing economic profits you can expect industry supply to?
Remains the same...
What is the definition of expanding industry?
An industry whose firms earn economic profits and for which an increase in output occurs as new firms enter the industry.
When perfectly competitive firms in an industry are earning positive economic profits, how does this impact market equilibrium and the long-term sustainability of the industry?
When perfectly competitive firms in an industry are earning positive economic profits, it attracts new firms to enter the market, increasing competition. This leads to a decrease in prices and profits until they reach a long-term equilibrium where firms earn normal profits. This process ensures the long-term sustainability of the industry by preventing excessive profits and encouraging efficiency.
What will excessive or economic profits induce for a firm in any industry structure?
This will cause a new entry into the market.
Which is the best example of a laissez-faire economic policy that helps business make profits?
limiting regulations on the steel industry-novanet!!
How do you calculate economic profits?
Profits = revenues - expenses
Which is the example of a laissez -faire economic policy that helps businesses make profits?
U.S. History GP: limiting regulations on the steel industry
Entry and exit in a purely competitive industry occur in the. True Or False?
Long run, so that long-run economic profits are zero.
What was the best example of a laissezfaire economic policy that helps businesses make profits?
limiting regulations on the steel industry-novanet
Which is the best example of laissez-faire economic policy that helps businesses make profits?
U.S. History GP: limiting regulations on the steel industry
Accounting profits are typically?
greater then economic profits,as accounting profits do not include implicit costs
What is a reasonable profit margin?
what is the difference between reasonable profits and economic profits
