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If competitive firm earn zero economic profit explain why anyone would invest money in them?
People do not invest money in firms because of what they are earning today. They invest money because they think the firm will turn a profit in the future. Markets are anticipatory. One other reason people invest is to buy a job. Several people will get together and purchase or create a business. Then they will hire themselves to run it. The income may simply be enough to pay the help. An owner may not get his money back until he sells his share of the business and his job.
What else can I help you with?
What is the term of economic arrangement in which a number of investors pool their monies to invest in a specific venture?
Investment Club
Communism is an example of what type of economic system?
It is a form of a command economy. Communism is an economic theory which stresses that the control of the means of producing economic goods in a society should reside in the hands of those who invest their labor for production.
Those who contend that oligopolists are likely than more competitive firms to engage in R and D say that?
Those who argue that oligopolists are more likely to engage in R&D than firms in more competitive markets suggest that oligopolists have greater financial resources and the ability to invest in long-term innovation. They also face less price competition, allowing them to focus on developing new products or technologies to gain a competitive edge. Furthermore, the potential for significant market share gains from successful innovations can incentivize oligopolists to invest heavily in research and development.
If a country does not invest in its human capitol how can it affect the country's GDP?
If a country fails to invest in its human capital, it can lead to a less skilled and efficient workforce, ultimately hampering productivity and innovation. This lack of investment can result in lower economic growth and diminished competitiveness in the global market. Consequently, the country's GDP may stagnate or decline, as a poorly educated and trained population is less capable of contributing effectively to economic development. In the long run, this can perpetuate cycles of poverty and inequality, further undermining economic performance.
What characteristics must a society have in order for capitalism to be possible?
Capitalism is an economic system in which the means of production are privately owned; supply, demand and price are mostly set by market forces rather than economic planning; and profit is distributed to owners who invest in businesses.
When was Wałbrzych Special Economic Zone 'INVEST-PARK' created?
Wałbrzych Special Economic Zone 'INVEST-PARK' was created in 1997.
What is Wałbrzych Special Economic Zone 'INVEST-PARK''s motto?
The motto of Wałbrzych Special Economic Zone 'INVEST-PARK' is 'Join the best!'.
Who can invest in initial public offering?
Anyone
Anyone can invest in a closely held corporation?
yes
How does the Cuban economic embargo influence individual economic activities?
Americans are not allowed to invest in, trade with, or travel to Cuba for business.
What does the Georgia Department of Economic Development encourage?
Businesses to invest in the state of Georgia.
Why do you need economic development in south Africa?
It has caused foreign companies to invest in them.
Who can invest in banking sector funds?
Usually there are no restrictions as to who can invest in a particular type of fund. If you are asking, who would want to invest in banking funds, the answer is: anyone who feels that the banking industry will continue to grow and generate profits for the investors can invest in them.
Are investors upper middle class?
Some are, some aren't. Anyone can invest.
What would be an ideal stock option agreement for someone of my economic standing?
The way to choose the best stock option would be to speak with a financial adviser. A financial adviser will show you different options and explain which stock options will be worthwhile for you to invest.
Who controls the prices of goods and services in the economic system communism?
The government decides where to invest resources.
Who controls the the prices of goods and services in the economic systems of communism?
The government decides where to invest resources.
