Homework Answers
Accounting profit are profit that does not include opportunity cost. So accounting profit are revenue minus cost(excluding opportunity cost). While economic profit are profit with deduction of opportunity cost. i.e revenue minus cost( including the opportunity cost).
So we can observe that accounting profit will be higher as opportunity cost is not deducted from it
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2. Describe the difference between accounting and economic profits. Which measure is gener- ally larger? Why? 2. D...
2. Describe the difference between accounting and economic profits. Which measure is gener- ally larger? Why?
2. Describe the difference between accounting and economic profits. Which measure is gener- ally larger? Why?
1. Why is economic growth important? 2. Describe the difference between economic expansion and long-run economic...
1. Why is economic growth important? 2. Describe the difference between economic expansion and long-run economic growth. Page 7 3. Describe the difference between growth that occurs as a result of an increase in inputs and growth that occurs as a result of an increase in output per input. 4. How do the following institutions promote growth? o Property rights Competitive markets o Efficient financial institutions
Economic profits are maximized at the point at which A. accounting profits are equal to zero....
Economic profits are maximized at the point at which A. accounting profits are equal to zero. B. total revenues are greater than total costs. C. marginal revenues equal marginal costs. D. accounting profit exceeds economic profit.
Describe the difference in economic profit between a competitive firm and a monopolist in both the...
Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms ____#1______ earn positive economic profits. In the long run, ______#2_________ can earn a positive economic profit. #1: CAN or CANNOT #2: A) competitive firms, but not monopolists B) both monopolists and competitive firms C) neither monopolists nor competitive firms D) monopolists but...
The difference between accounting profit and economic profit relates to a. the manner in which revenues...
The difference between accounting profit and economic profit relates to a. the manner in which revenues are defined b. how total revenue is calculated c. the manner in which costs are defined d. the price of the good in the market
The difference between economic profit and accounting profit is that economic profit is calculated based on...
The difference between economic profit and accounting profit is that economic profit is calculated based on both implicit and explicit costs whereas accounting profit is calculated based on explicit costs only. True False
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a...
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium occurs more quickly for competitive industries than for monopolists. O False
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a...
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium occurs more quickly for competitive industries than for monopolists. True False
Discuss the difference between real GDP and nominal GDP, which is used by economists to measure...
Discuss the difference between real GDP and nominal GDP, which is used by economists to measure economic well-being and why. Why is a large GDP a good thing? Give an example of something that would raise GDP but would be considered undesirable and explain.
this is micro economics Define Accounting Profit and Economic Profit What is the difference between Accounting...
this is micro economics
Define Accounting Profit and Economic Profit What is the difference between Accounting Profit and Economic Profit? Does a profitable have to earn a positive economic profit or can it still be profitable while earning a zero economic profit? Answer the above question and respond to at least two of your classmates' posts
2. Describe the difference between accounting and economic profits. Which measure is gener- ally larger? Why?
1. Why is economic growth important? 2. Describe the difference between economic expansion and long-run economic growth. Page 7 3. Describe the difference between growth that occurs as a result of an increase in inputs and growth that occurs as a result of an increase in output per input. 4. How do the following institutions promote growth? o Property rights Competitive markets o Efficient financial institutions
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium occurs more quickly for competitive industries than for monopolists. O False
this is micro economics
Define Accounting Profit and Economic Profit What is the difference between Accounting Profit and Economic Profit? Does a profitable have to earn a positive economic profit or can it still be profitable while earning a zero economic profit? Answer the above question and respond to at least two of your classmates' posts
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