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A normal profit is the least amount of money needed for any company to remain viable. This is a different category from other similar profit selectionsÊsuch as Economics or accounting.
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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.=
When perfectly competitive firms in an industry are earning positive economic profits, how does this impact market equilibrium and the long-term sustainability of the industry?
When perfectly competitive firms in an industry are earning positive economic profits, it attracts new firms to enter the market, increasing competition. This leads to a decrease in prices and profits until they reach a long-term equilibrium where firms earn normal profits. This process ensures the long-term sustainability of the industry by preventing excessive profits and encouraging efficiency.
Accounting profits are typically?
greater then economic profits,as accounting profits do not include implicit costs
What statements is true about prophets in a monopolistically competitive market?
In a monopolistically competitive market, firms can earn short-term profits due to product differentiation and brand loyalty, but these profits attract new entrants, leading to increased competition. Over time, the entry of new firms drives prices down and erodes profits, resulting in a long-term equilibrium where firms earn normal profits. Thus, while prophets (or profits) exist temporarily, they cannot be sustained in the long run. Ultimately, firms in this market structure operate with some degree of market power but face the constant threat of competition.
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.=
What are back-end profits?
Back-end profits are those made off non-direct sales for a business. These can be things like the sale of old equipment which benefit the company but are not a normal part of day to day operations.
When perfectly competitive firms in an industry are earning positive economic profits, how does this impact market equilibrium and the long-term sustainability of the industry?
When perfectly competitive firms in an industry are earning positive economic profits, it attracts new firms to enter the market, increasing competition. This leads to a decrease in prices and profits until they reach a long-term equilibrium where firms earn normal profits. This process ensures the long-term sustainability of the industry by preventing excessive profits and encouraging efficiency.
Advantages of capital from profits?
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Which is gramatically correct bottom-line profits or bottom line profits?
Bottom-line profits
Accounting profits are typically?
greater then economic profits,as accounting profits do not include implicit costs
If SmartShop's profits have been growing at 5 percent per year This year their profits were approximately 500000 What were their profits last year?
SmartShop's profits have been growing at 5% per year. This year their profits were approximately $500,000. What were their profits last year?
What were the profits of SmartShop if their profits have been growing at 5 percent per year and this year their profits were approximately 500000?
The answer depends on the period for which the old profits are required.
A small company had profits of 550000 last year This year their profits were only 484000 dollars What was the percent decrease in their profits?
The company's profits decreased by 12%
What statements is true about prophets in a monopolistically competitive market?
In a monopolistically competitive market, firms can earn short-term profits due to product differentiation and brand loyalty, but these profits attract new entrants, leading to increased competition. Over time, the entry of new firms drives prices down and erodes profits, resulting in a long-term equilibrium where firms earn normal profits. Thus, while prophets (or profits) exist temporarily, they cannot be sustained in the long run. Ultimately, firms in this market structure operate with some degree of market power but face the constant threat of competition.
How does the goodwill affect net income?
Goodwill is the value of reputation of a irm in respect of the profits expected in future over and above the normal rate of return, which other companies can earn. Over and above the normal rate implies that the firms capability to earn more profits when compared to other firms because of its good brand name, locational advantage, good customer relations or possession of a unique patent right. The impact of goodwill on the net income is that, as good will is amortized the amount of profits get reduced. This further reduces the balacne of reserves and surplus amt in the balance sheet.
