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In what market structures is it possible for Firms to make positive profit in the long run?
Wiki User
∙ 11y ago
Monopoly and Oligopoly are both the only firms that may make positive profit in the long run.
Under LONG-RUN MARKET TENDENCY OF PRICE AND ATC:
Monopoly P>ATC and Oligopoly P>ATC both will have postive profits, however it possible to turn to zero profits if there isn't capitalization of the profits or any rent-seeking activities or if the market is contestable.
But moreover, the answer you're looking for is the above that bother Monopoly and Oligopoly will have positive profit in the long run.
Wiki User
∙ 11y ago
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To maximize profit or minimize loss, a firm should produce the quantity at which marginal revenue equals marginal cost; this rule holds for all market structures
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because if?
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
Who receives the most of what is produced in a market economy?
those who are willing and able to buy them.
Do most businesses make a large profit under the free market system?
Yes, most businesses do make a large profit on the free market. The free market is not susceptible to the laws of trade
What is profit oriented objectives?
their main goal of course is to gain more profit for the target market.
What is the golden rule of profit maximization?
To maximize profit or minimize loss, a firm should produce the quantity at which marginal revenue equals marginal cost; this rule holds for all market structures
Why market is segmented?
If the market is segmented the organization can clearly identify the targeted market, and also it is possible to allocate or concentrate the organizations resources to the target market, and through which the organization can maximize the profit.
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because if?
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
In commodity market which segment you have trade for profit?
In commodity market, the segment that you have trade for profit is the commodity segment.
Who receives the most of what is produced in a market economy?
those who are willing and able to buy them.
How can the gross profit be positive while the net profit is negative?
not sure
Can the profit of 3.21 be best described in negative or positive numbers?
Positive.
Positive operating income will result if gross profit exceeds?
Positive Operating income will result if gross profit exceeds operating expenses
What organizational structures are commonly found for stock exchanges?
The organizational structures commonly found for exchanges are: nonprofit, the consumer cooperative, and for-profit. Historically, most exchanges have been non-profit organizations.
What is a positive return on capital?
A positive return on capital is a profit. When the sales of a product are greater than the cost of producing the product, the company will make a profit.
How do I calculate simple profit and loss?
Profit or loss = income - expenses. A positive number is profit, a negative number is loss.
What are the major motivators in a market economy?
profit
