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Profits exist as a reward for entrepreneurs and businesses that successfully create value by meeting consumer needs and preferences. They serve as an incentive for innovation, risk-taking, and efficient resource allocation in the economy. Additionally, profits signal to investors where to allocate capital, guiding the growth of industries and technologies that are in demand. Ultimately, profits reflect the difference between revenues and costs, driving competition and economic progress.
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What conditions exist when economic profits are maximized?
Peak performance.
Supernormal profit of monopolistic competition?
In the short run, abnormal profits exist but in the long run, it gets eroded away because new firms enter the industry.
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.
Accounting profits are typically?
greater then economic profits,as accounting profits do not include implicit costs
How do you calculate economic profits?
Profits = revenues - expenses
What conditions exist when economic profits are maximized?
Peak performance.
What do you mean by profit making organisations?
For profit organizations that exist to make money as opposed to non profits who exist to meet a community need.
Supernormal profit of monopolistic competition?
In the short run, abnormal profits exist but in the long run, it gets eroded away because new firms enter the industry.
Where is the company ''Marketing Concepts'' based?
Marketing Concepts is a company based out of the state of Minnesota. They exist with the primary purpose to help people in the commerce industry increase sales and profits.
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.
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%
How do you calculate economic profits?
Profits = revenues - expenses
