Question: True or false: It is not sensible to close a business firm if it earns zero economic profit because the firm is earning sufficient return

True or false: It is not sensible to close a business firm if it earns zero economic profit because the firm is earning sufficient return to covers its opportunity cost of capital

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 Economics Questions!

The first production department of Stone Incorporated reports the following for April. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2...

All of the following are assumptions of the model of perfect competition except: a) the demand curve facing the firm is perfectly elastic. b) firms in the market produce identical outputs. c) the...

Exercise one. Kindly answer with clear explanations. 1. Compared with a perfectively competitive market a monopoly is inefficient because a. it raises the market price above marginal cost and...

provide all the answers. A. 1. Give one (1) assumption of consumer theory and relate it to your real-life experiences as a consumer. 2. The marginal rate of substitution diminishes along an...

I. INTRODUCTION In the upcoming pages of this article, Working Capital and its related concepts are discussed in a vivid manner for a clear understanding of the vital business aspect. The prime...

1. The law of demand indicates that _____ [ a. when prices rise, the quantity demanded rises, b. when prices rise, the quantity demanded falls. c. when prices fall, the quantity supplied rises. [ d....

1. Market structure analysis allows economists to: A) predict the behavior of firms. B) create the conditions of competition. C) eliminate economic profits. D) remodel the economy. 2. The perfectly...

File Tools View econ . Saved to this PC v X Question 1 (1 point) Because the perfectly competitive firm is a price-taker, its demand curve is downward-sloping Price MC b MRS horizontal ATC AVC - MR....

Question 1 (1 point) At a product price of "0h", this firm would maximize profit by producing at an output of a "0n" b "0p" c "0r" d "0s" e "0t" Question 2 (1 point) Because the perfectly competitive...

Question one. 15. In a perfectly competitive market, consumer surplus typically is A) undefined. B) positive. C) zero. D) negative. 16. Which of the following statements is TRUE? A) A monopolist...

General Hospital is a 99 bed acute care facility that had 3,547 patient discharges and 10,367 patient days for the mst recent year. These discharges generated $35,000,000 in Gross revenue and...

Your hospital has built a new freestanding facility that includes a 36- bed medical telemetry care unit. The patients and staff from the existing smaller units will be combined into the new unit. The...

Hw 0 8 - 2 . 3 - SODE - CCE: Problem 8 Problem Value: 5 point ( s ) . Problem Score: 0 % . Attempts Remaining: 3 attempts. Help Entering Answers See Examples 2 . 3 . 1 - 2 . 3 . 5 , in Section 2 . 3...

At the beginning of Year 1, Ithaca Incorporated purchased land for $1,500,000 from which it expects to extract 800,000 tons of minerals. The estimated residual value is $250,000. What is Ithaca...

Sako Companys Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Sako Company has a Hi-Fi Division that could use...

What is the racial and ethnic composition of the U.S. Army, Air Force, Navy, and Marines? How many Blacks as a proportion of the Army are in officer positions? Choose one other military organization...

Starbucks is a coffee company-a big coffee company. During a 10-year period, the number of Starbucks locations grew from 165 to over 8,800 stores in 50 countries. The following is adapted from...

Reconfigure the Gantt chart in problem 2 to include some different predecessor relationships. Optional: Solve this problem with Microsoft Project. a. Assume that activities B and C are linked with a...

Question 7 . Given the following simple maze, convert the maze into a graph. ( 5 points ) Question 8 . Implement depth first search in the maze function in homework 1 . py . ( 2 0 points ) Question 9...

8. Set a goal that you really want to achieve in the near future, lets say 12 years. How does this goal fit in relation to the form roles and values above? What role and what value was it that...

7. Fill out the form below. Only the most important roles and your basic values are to be filled.

10. Try to remember the last communication you entered into. How many times did you fill in information that the other person did not convey? How many times did you speak before the other person...