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What happens when a firm's revenue just covers all its opportunity costs?
Wiki User
∙ 10y ago
economic prifit is zero
Wiki User
∙ 10y ago
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What generates the law of increasing opportunity costs?
The law of increasing opportunity costs states that the more of a product that is produced the greater is its opportunity cost.
Profits will be maximized when marginal revenue?
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
If there are no profits in competitive equilibrium why do firms produce how can they stay in business?
why do firm stay in business if profit is=0In economic profit is revenue minus all costs,including implicit costs,like the opportunity cost of the owner's time and money.In the zero profit equilibrium,firms earn enough revenue to cover these costs.by Abdul hanan tareen
What are the examples to increase the opportunity cost in tourism?
the increased opportunity costs in tourism
What is thinking at the margin?
The opportunity costs and the benefits.
What are the opportunity costs and benefits for partnership?
Benefits: Share in responsibility, Easier to raise capital together. Opportunity Cost: Share in revenue, Possibility of the partner not putting in enough or as much effort.
When are opportunity costs present?
Every time a choice is made, opportunity costs are assumed.
What are profit maximization policies?
Profit maximization policies are policies established to increase the chances of more revenue. Many companies consider opportunity costs as a way to maximize profits.
What is revenue minus costs?
Profit
What generates the law of increasing opportunity costs?
The law of increasing opportunity costs states that the more of a product that is produced the greater is its opportunity cost.
Profits will be maximized when marginal revenue?
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
If there are no profits in competitive equilibrium why do firms produce how can they stay in business?
why do firm stay in business if profit is=0In economic profit is revenue minus all costs,including implicit costs,like the opportunity cost of the owner's time and money.In the zero profit equilibrium,firms earn enough revenue to cover these costs.by Abdul hanan tareen
What is the break even revenue?
Amount of revenue that is needed to cover all of the fixed costs.
Profits is calculated by subtracting costs from what?
Profit is calculated by subtracting costs from revenue.
Subtracting costs from revenue calculates?
profit
Calculate costs as a percentage of revenue?
15%
How do you calculate GP Gross Profit when the revenue is less than the costs?
If revenue is less than costs, the gross profit is negative -- it is not a profitable company.
