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In the short run, monopolistically competitive firms can earn profits due to their ability to differentiate their products and have some degree of market power. This differentiation allows them to set prices above marginal costs. However, in the long run, the presence of new entrants attracted by these profits typically leads to increased competition, which erodes those profits. Ultimately, firms in monopolistically competitive markets tend to earn zero economic profit in the long run, as prices adjust to equal average costs.
What else can I help you with?
Who the profits from sale or trade of earns command economy?
the citizens. Everyone in the country.
What are minuscule profits?
Minuscule profits refer to very small or negligible amounts of profit that a business or individual earns from their operations or investments. These profits are often not significant enough to cover expenses or justify the effort and resources spent. They can occur in highly competitive markets or during periods of economic downturn, where margins are tight. In essence, minuscule profits indicate limited financial gain and may prompt a reevaluation of business strategies.
How can a business fulfill its social responsability to its customers and still earn profit?
while it earns its profits, it IS fulfilling its social res. IT is hiring, training, buying locally.
Explain in detail Price determination under perfect competition?
Price under perfect competition is determined by the forces of demand and supply of the industry. The price once fixed up by the industry is taken up by all the firms and the firm can sell any number of units at hat price.=The firm may earn normal profits, super normal profits in the short run whereas it earns normal profits in the long run.=
Price determination in perfect competition?
Price under perfect competition is determined by the forces of demand and supply of the industry. The price once fixed up by the industry is taken up by all the firms and the firm can sell any number of units at hat price.=The firm may earn normal profits, super normal profits in the short run whereas it earns normal profits in the long run.=
Who the profits from sale or trade of earns command economy?
the citizens. Everyone in the country.
What are minuscule profits?
Minuscule profits refer to very small or negligible amounts of profit that a business or individual earns from their operations or investments. These profits are often not significant enough to cover expenses or justify the effort and resources spent. They can occur in highly competitive markets or during periods of economic downturn, where margins are tight. In essence, minuscule profits indicate limited financial gain and may prompt a reevaluation of business strategies.
Which type of business earns huge profits?
realestate, stocks, anything in the technology field.
How does a bank make most of its profits on its business?
By paying out less in interest on deposits than it earns in interest on loans
What are the activities an entrepreneur should undertake in order to earn profits?
The amount of revenue the entrepreneur earns must exceed expenditures.
What is super profit?
Super profit refers to the excess profit that a company earns over and above the normal expected return on investment. It typically arises when a business has a competitive advantage, allowing it to generate higher profits than its rivals. Super profits are often associated with monopolistic or oligopolistic market structures where firms can set prices above marginal costs. This concept is significant in economics for analyzing market power and profitability.
What is the salary of the Governor General of Canada?
The Governor General of Canada earns CAD $129,800 per annum.
How can a business fulfill its social responsibility to its customers and still earn a profit?
while it earns its profits, it IS fulfilling its social res. IT is hiring, training, buying locally.
How can a business fulfill its social responsability to its customers and still earn profit?
while it earns its profits, it IS fulfilling its social res. IT is hiring, training, buying locally.
How much is kyle sandilands worth?
He earns $1m dollars annually at the radio job and profits from his nightclubs. He owns a Hollywood mini mansion located in a quality area of LA.
How much do generals make?
How much a General in the army earns depends on the rank. A Brigadier General makes around $7,809.90 a month and a General makes around $15,188.10 a month.
How much a general surgeon earns per month in america?
The general surgeon in the United States makes between $18000 and $25000 per month.
