Does earning a normal profit or when economic profit = 0 mean a firm is not earning

Question:

Does earning a normal profit or when economic profit = 0 mean a firm is not earning a profit? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics An Introduction To Traditional And Progressive Views

ISBN: 9780765616685

7th Edition

Authors: Howard J. Sherman, E. K. Hunt, Reynold F. Nesiba, Phillip A. O'Hara, Barbara A. Wiens-Tuers

See More Books

Question Posted: Nov 08, 2023 08:58 PM

See More Questions

Distinguish between accounting, normal and economic profits. What does normal profit include that accounting profit does not? If Economic profit is = 0, what does that mean for normal profit? Is...
There are 4 models of Corporate Social Responsibility. I. Economic Model a. Profit-Based SocialResponsibility aka Economic Model : Milton Friedman's 1970New York Times article "The Social...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. amount due for employee salaries, $4,800 B....
The following is an excerpt from a telephone conversation between Pedro Mendoza, president of Goliath Supplies Co., and Natalie Weich, owner of Flint Employment Co.: Pedro: Natalie, youre going to...
A shock wave is a very thin layer (thickness $=\ell$ ) in a highspeed (supersonic) gas flow across which the flow properties (velocity, density, pressure, etc.) change from state (1) to state (2)...
How does the conversion cycle of a manufacturing company differ from that of a retailer or wholesaler?
Budgets for production and direct manufacturing labor. (CMA, adapted) Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Bob Anderson,...
As a general rule you should spend no more than of your budget on rent or a mortgage? How much equity does Shonda have in her home if she purchased it for 525,000 and owes 418,000 to the bank. Her...
What assumption(s) of competitive markets is critical for competing away excess profits? Explain.
What assumptions of a perfectly competitive market are violated in each of the other market structures.
How do input controls affect managements assertions with respect to the financial statements?
Write a subroutine in Fortran to ascertain whether three points are collinear. Collinearity of three points (x1, y1), (x2, y2), and (x3, y3) can be determined using the following formula:...
1. Identify the optimal path from the starting point (Lagos) to the goal (Abuja) in the provided figure using: i) A* Star Search ii) Best First Search (BFS) The number outside the oval is the...
1100 kg lift is suspended by a series of 24 steel cables of mean diameter 20mm. Cables are attached to the lift top and are arranged so torsional vibration is minimised. Lift is accelerating upwards...
A force given by F = (5t + 6t) N, acts on the block as shown. Determine the velocity of the 4 kg block when t = 2 seconds. Assume the coefficient of kinetic friction is = 0.25. F
What are categorical data and how do you handle them? Given the data for heights: (Tall, Medium, Short). Use one-hot encoding to encode data to numerical data. Consider the data X= [14,23,37, 17,...
Alma Books Ltd. (Alma) is a national chain of bookstores. Alma earns revenue in several different ways: a. Sale of books and magazines to customers in its stores-customers pay cash or use debit or...
United Business Forms capital structure is as follows: Debt ............................................ 35% Preferred stock ........................... 15 Common equity .......................... 50...
What is the value of Ls stock for volatilities between 0.20 and 0.95? What in-centives might the manager of L have if she understands this relationship? What might debt holders do in response? MINI...
What is meant by the term distribution policy? MINI CASE Southeastern Steel Company (SSC) was formed 5 years ago to exploit a new continuous-casting process. SSCs founders, Donald Brown and Margo...
The terms irrelevance, bird-in-the-hand, and tax preference have been used to describe three major theories regarding the way dividend payouts affect a firms value. Explain what these terms mean, and...
Focus on asymmetric information, moral hazard, and adverse selection. Sometimes there can be confusion as to these terms' meanings and connections. To prepare for the discussion, watch the following...
Flight Caf Planning Budget For the Month Ended July 31 27,000 $ 108,000 Budgeted meals (q) Revenue ($4.00q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,100 + $0.20q) Utilities ($2,000 +...
9. Construction sand is piled in a right cone that has a height of 30 feet and a diameter of 110 feet. The sand has a density of 98.0 lb/ft. a) Determine the volume of the cone to the nearest 0.1 ft....

Does earning a normal profit or when economic profit = 0 mean a firm is not earning

Question:

Step by Step Answer:

No earning a normal profit or having an economic profit of zero does not mean that a firm is not ear...View the full answer

Economics An Introduction To Traditional And Progressive Views

Students also viewed these Business questions