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What are a firms profit at the break-even point?
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
Among the multiplicity of objectives that a modern firm has profit maximization continues to be the most important Comment?
The success or failure of a firm is measured in terms of the amount of profit it is able to earn in a competitive market. Under profit management, one has to study various theories of profit, emergence of profit, functions of profit and its measurement, etc.Thoeries underlying the Objective of a Firm, mainly talk about the subject of Ethics in Business. Debate is going on since a long time, as to whether every Firm's Objective needs to be ETHICAL? the answer may seem as simple as "YES", but the counter arguements that follow are difficult to answer.Coming to Profit Maximization, the question goes as to whether Profit Maximization Goal is justitfied? In a private enterprise, no one can have control over Profit maximization. If the profits are made with the use of Society's resources, such profits need to be sowed back for Societal Development.The profit-maximization rule applies both to firms that are able to sell their product at a constant price and to firms that find they must reduce the price of their product to increase sales. In the real world, firms have to engage in trial-and-error discovery processes, searching for the profit-maximization point. But the process can be succinctly described by the marginal revenue-marginal cost rule.Profit is what is left over from a business after the bills are paid. without profit the company can not afford to re-invest in capital or have money to pay stockholders. I think Customer satisfaction if the basic motive and objective of firm. When we will more and more consider to satisfy customer needs and wants, automatically our secondary objective "profit maximization" will be achieved.
What is the role of profit within market economy?
1. Investment in Research & Development. This leads to better technology and dynamic efficiency. This profit is particularly important for some industries such as oil exploration and car manufacture. Without this investment the economy will stagnate and lose international competitiveness, leading to job losses in some sectors.2. Reward for Shareholders.Shareholders are given dividends. Higher profit leads to higher dividends and encourages people to buy shares. Shareholders are an important source of finance for firms. Profit is important to be able to renumerate shareholders.3. High Profit should Attract New Firms into the industry.For example, the high price of oil and hence profits for oil companies should encourage firms to develop new oil fields. This assumes the market is contestable and new firms can actually enter.4. Risk Bearing EconomiesProfit can be saved and provide insurance for an unexpected downturn, such as recession or rapid appreciation in the exchange rate.5. Tax Revenues.Governments charge corporation tax on company profits and this provides several billion pound of tax revenue per year. In UK the corporation tax rate is 20%
What is the role of profit in business?
Profit in business helps in enhancing the owners capital and helps to invest on other works.By profit he can be able to give salaries or pay his dept
What are a firms profit at the break-even point?
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
Among the multiplicity of objectives that a modern firm has profit maximization continues to be the most important Comment?
The success or failure of a firm is measured in terms of the amount of profit it is able to earn in a competitive market. Under profit management, one has to study various theories of profit, emergence of profit, functions of profit and its measurement, etc.Thoeries underlying the Objective of a Firm, mainly talk about the subject of Ethics in Business. Debate is going on since a long time, as to whether every Firm's Objective needs to be ETHICAL? the answer may seem as simple as "YES", but the counter arguements that follow are difficult to answer.Coming to Profit Maximization, the question goes as to whether Profit Maximization Goal is justitfied? In a private enterprise, no one can have control over Profit maximization. If the profits are made with the use of Society's resources, such profits need to be sowed back for Societal Development.The profit-maximization rule applies both to firms that are able to sell their product at a constant price and to firms that find they must reduce the price of their product to increase sales. In the real world, firms have to engage in trial-and-error discovery processes, searching for the profit-maximization point. But the process can be succinctly described by the marginal revenue-marginal cost rule.Profit is what is left over from a business after the bills are paid. without profit the company can not afford to re-invest in capital or have money to pay stockholders. I think Customer satisfaction if the basic motive and objective of firm. When we will more and more consider to satisfy customer needs and wants, automatically our secondary objective "profit maximization" will be achieved.
What are some top management consulting firms?
Top management consulting firms that are able to render services to a variety of organisations and individuals include: Accenture, Deloitte Consulting and Ernst and Young. As these are specialist organisations, those seeking services should ensure that the appointed organisation is in line with specified needs.
What is the role of profit within market economy?
1. Investment in Research & Development. This leads to better technology and dynamic efficiency. This profit is particularly important for some industries such as oil exploration and car manufacture. Without this investment the economy will stagnate and lose international competitiveness, leading to job losses in some sectors.2. Reward for Shareholders.Shareholders are given dividends. Higher profit leads to higher dividends and encourages people to buy shares. Shareholders are an important source of finance for firms. Profit is important to be able to renumerate shareholders.3. High Profit should Attract New Firms into the industry.For example, the high price of oil and hence profits for oil companies should encourage firms to develop new oil fields. This assumes the market is contestable and new firms can actually enter.4. Risk Bearing EconomiesProfit can be saved and provide insurance for an unexpected downturn, such as recession or rapid appreciation in the exchange rate.5. Tax Revenues.Governments charge corporation tax on company profits and this provides several billion pound of tax revenue per year. In UK the corporation tax rate is 20%
What are some popular printing firms we could do business with?
Check your local newspaper, they may have articles or adverts for printing firms. Also you could check out your local library, I'm sure they will be able to assist and advise you on what firms are popular.
Is there any disadvantage to a government subsidizing domestic firms to make them able to complete in price with cheaper imported goods?
Some positive elements are that it helps domestic consumers, firms and, workers. However, it could lead to inflation or an overall increase in price of products across all sectors. People may also end up paying higher taxes on goods.
What advantages do bonds offer to firms that issue them?
The major advantage offered by bonds to firms that issue them is access to low cost capital that if listed and rated is able to be traded.
Why suppliers need accounting information?
to make sure firms able to pay for its purchases
What is the role of profit in business?
Profit in business helps in enhancing the owners capital and helps to invest on other works.By profit he can be able to give salaries or pay his dept
2 Does the fact that a firm is a monopolist ensure that it will be able to earn positive economic profits Why or why not?
No. It depends on the monopolistic firm. If the firm is a monopolist because it has lowered its prices on products so low to drain out the competition and force the other firms to exit the market, it may not be profiting at all and it may be losing money instead. However, in the long run a monopolistic firm can be profitable because when all firms exit the market it has the ability to raise prices to pay for any loss it may have experienced by lowering prices in the earlier part of its monopolistic strategy. A firm that is a monopolist in a market may never see profitability. It all depends on the monopolist's ability to defend its product that it takes to market. Also, a firm isn't ever guaranteed positive economic profit. The demand might cease at any time and the firm might find itself in a never ending loss scenerio.
Monopolistically competitive firms may not be able to produce goods at the lowest possible average cost. This statement is describing how monopolistically competitive firms might be?
without economies of scale
