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What else can I help you with?
Can a monopolistic competitive firm earn long run profit?
In the long run, if a firm is making a profit more firms will enter. This will cause profit to drop. Firms will eventually drop out because of this and economic profit will makes it way to zero(a result of the invisible hand).
What is the difference between profit maximization and wealth maximization?
Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.
What do you understand as a business ethics and why is necessary apply it?
business ethics means tactics applied for more profit we have to apply business ethics to earn more money
What kind of a profit is earned by perfect competition in the long run?
In the long period, economic profit cannot be sustained. The arrival of new firms or expansion of existing firms (if returns to scale are constant) in the market causes the (horizontal) demand curve of each individual firm to shift downward, bringing down at the same time the price, the average revenue and marginal revenue curve. The final outcome is that, in the long run, the firm will make only normal profit (zero economic profit).
How does the stock price affect company profit?
increase in stock prices increase investor belief in company as a result stakeholder (loan provider , creditor etc.) extend more facility to company as a result copmany earn more profit
What are the major aspect of the external environment in business firms?
in business firm business man can earn more information about the goods n earn profit
Can a monopolistic competitive firm earn long run profit?
In the long run, if a firm is making a profit more firms will enter. This will cause profit to drop. Firms will eventually drop out because of this and economic profit will makes it way to zero(a result of the invisible hand).
Why do producers sell more when the price is high?
To earn more profit
Why do producers sell more products when the price high?
To earn more profit
Why do producers sells more products when the price is high?
To earn more profit
Why do firms try to sell more products or to sell them at a higher price?
so they can have a bigger profit margin
Why do firms try to sell more products or to sell them at higher price?
so they can have a bigger profit margin
Why do countries do international business?
Because they want earn more profit from therebusiness .
Why do firms try to sell more products or try to sell them at a higher price?
so they can have a bigger profit margin
How much does solicitors earn in UK?
The average salary for solicitors in the UK is around £50,000 to £80,000 per year, but this can vary depending on factors such as experience, location, and type of law practice. More experienced solicitors in London or at top law firms can earn significantly more.
Which type of engineer makes the most money?
Named partners in firms that do Corporate Underwriting for Publicly Traded companies tend to earn just a tad more than God.
What is profit maximazation?
Profit Maximization is an interesting and rather deep issue in Economics. Please understand that this question can be answered from various approach and interpretation. There are other disciplines like Business and Management which offers a slightly different answer.For example, if you are a Finance student, you might use the term to maximize shareholder value. ( which can be different from this goal ). From my understanding, profit maximization alone cannot be an appropriate goal for a firm. When I teach my students, I often ask them, if each of you start a company today, will the reason to do so, just to maximize profit ?. Although many firms do aim to maximize profit in their existence, not all do so. When we say maximize profit, this means to get the most profit in the firm's existence. And there are other firms that don't. Other goals of the firm can be expansion or growth, where they focus on establishing more branches or growing larger, while other firms focus on sales maximization, where they focus on selling more. There are also other firms that put the environment or social issues as their goal. ( although this can be argued if it's a marketing ploy ). Apart from these different goals of firms, we need to understand that different firms have different goals. A small grocery shop will have a different goal than a multinational company. And a different environment can also affect the goals of the company. If the firms operates in a monopolistic environment, then profit maximization is possible, as it's the only firm. If the firm operates in a perfectly competitive environment, the goal of profit maximization is not possible, as profit can be influenced by new firms who enter the environment and old firms who exit it.
