Question: Distinguish between accounting, normal and economic profits. What does normal profit include that accounting profit does not? If Economic profit is = 0, what does

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 earning a normal profit good or bad?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Task One: A basic model for the amount of energy required to lift an object a certain distance is given by E = WI . h. Here, W is the gravitational force calculated by the object's weight, and h is...

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...

+ e) If the market price for newsprint falls to 450$ a ton, what do you recommend QUEPAP's management do, shut down production or continue operation ? You are retained as an economic consultant by a...

EXHIBITS: Email X To: Andrew Austin, Accounting Associate From: Laura Fuller, Accounting Manager RE: Economic Profits Hi Andrew, Per our discussion, I am attaching the short- and long-run supply and...

An entrepreneur has several independent business interests with limited time and financial resources. One year ago, she closed a profitable consulting practice to focus on opening a bridal store. At...

This is one of my assignments from microeconomics and I am unsure where to begin. I picked exxon mobile and air liquide as my two companies to compare. Please see below for assignment: we will try to...

Controller, Judy Koch, in a recent speech said, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in your response an explanation of the difference in behavior of...

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Directions to students: Download the solution to part 1 in the doc share (FILE: Unit 1 ETHICS CASE) or by clicking on the button to the left. Review the solution to parts 1 and 2 in the case. Drawing...

Refer to the article in theassignment folder and answer the following question: In their evaluation of the IAS 15Standard titled ?Revenue from Contracts with Customers?, Bioni et al (2012)made the...

Please answer these questions Question 1 Economists assume the principal motivation of producers is: Psychological gratification. Social status. Profit. Their preference for being "their own person."...

Describe how each of the following helps a bank control its credit risk: a. Loan covenants b. Risk rating systems c. Position limits

Eva travelled from Canada to the USA with C$3,030 as backup cash. In the USA she converted this amount to USD. From there she travels to Japan, where she converted her USD to Japanese yen. She...

3. Write a statement that causes the assembler to calculate the number of bytes in the following array, and assign the value to a symbolic constant named ArraySize: myArray WORD 20 DUP(?)

give rationale why mann whitney test best statistical test for this case : Do significant differences exist between husbands and wives regarding holiday depression? There is an ordinal measure of...

7. The celebration of Buddhas birthday is not held on Christmas, but instead on: a. Fourth of July b. July 14 c. Asian Lunar New Years Day d. Hanamatsuri

2. What is the name of the dish that features black-eyed peas and rice (although sometimes collards, ham hocks, stewed tomatoes, or other items) and is served in the South, especially on New Years...

10. Describe the relationship between communication and power.