Why can there be excess profits in the short run but not in the long run?
Question:
Why can there be excess profits in the short run but not in the long run?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
Excess profits can occur in the short run due to several factors including Barriers to entry When there are significant barriers to entry in a market ...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
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
Question Posted:
Students also viewed these Business questions
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
Business Taxes: In this exercise, suppose that your hamburger business McWendys has a homothetic decreasing returns to scale production function that uses labor and capital k to produce hamburgers x...
-
Drucker Construction Company began construction on a highway overpass for Horry County in 2022. The contract price was $9 million and the overpass is expected to take 3 years to complete. Following...
-
Assume you are considering opening a retail business. You are trying to decide whether to have a traditional brick-and-mortar store or to sell only online. Explain how the activities and costs differ...
-
What is the difference between the cost of merchandise purchased and the cost of merchandise available for sale? Can they be the same amount? Explain.
-
Refer to Problem 2. Determine profit when volume equals 22,000 units.
-
Consider the following cash flow profile and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically attractive?...
-
Select the best answer. 1. A term endowment is a gift a. The principal of which must be returned to the donor after a specied period of time b. The principal of which is available for expenditure...
-
A professor designing a class demonstration connects a parallel-plate capacitor to a battery, so that the potential difference between the plates is 255 V. Assume a plate separation of d = 1.72 cm...
-
Use a supply and demand graph of a market to demonstrate and explain the price an individual firm takes.
-
Describe why it takes many firms in a market in order for an individual firm to be price taker.
-
Use the data for Barkley Company in Problem 4-3B to complete the following requirements. Required 1. Prepare closing entries as of March 31, 2018 (the perpetual inventory system is used). 2. In prior...
-
50 X John is 25 years old and wants to have 1 million dollars in savings by the time he retires at 65. He plans to open a savings account that pays 4% interest compounded quarterly and he will be...
-
1) Mr. Ang's money became Php165,000 @ the end of 10 months. If the bank pays 12% annually, how much was his money @ the start? 2) Mr. So borrowed Php200,000 from a cooperative that charges 15%...
-
Given the following code, what are the constraints on the input argument? int mystery(int num) { if (num == 0) return 0; else if (num > 100) return -1; else return num + mystery (num - 1);
-
Write a program called reservations.c that simulates some people trying to reserve seats at a restaurant for dinner. The program MUST work as follows: ? The restaurant takes reservations anywhere...
-
A worker applies a torque to a nut with a wrench 0.200 m long. Because of the cramped space, she must exert a force upward at an angle of 50.0 with respect to a line from the nut through the end of...
-
Five events pertaining to Lubbock Manufacturing Co. are described below. a. Declared and paid a cash dividend. b. Issued a 10 percent stock dividend. c. Issued a 2-for-1 stock split. d. Purchased...
-
Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...
-
Assume that firms U and L are in the same risk class, and that both have EBIT = $500,000. Firm U uses no debt financing, and its cost of equity is rsU = 14%. Firm L has $1 million of debt outstanding...
-
Graph (a) the relationships between capital costs and leverage as measured by D/V, and (b) the relationship between value and D. MINI CASE David Lyons, CEO of Lyons Solar Technologies, is concerned...
-
Using the data given in part B, but now assuming that firms L and U are both subject to a 40 percent corporate tax rate, repeat the analysis called for in B(1) and B(2) under the MM with-tax model....
-
2. Consider a simple economy as follows: INCOME (Y) 3,000 4,000 5,000 6,000 7,000 CONSUMPTION(C) INVESTMENT(I) 2,300 1,600 3,000 1,600 3,700 1,600 4,400 1,600 5,100 1,600 All the figures are in...
-
2. (20 points) What is the double coincidence of wants, and why is it a problem if there is no money? 3. (20 points) What are two things that meet the criteria of the functions of money, but may not...
-
1. The table below shows the relationship between the price of apple fritters and the number of apple fritters that Dan buys per week. Quantity of Price Fritters per Paid per Week Beginning Week...
Study smarter with the SolutionInn App