D Question 34 5 pts what does an economic profit of zero mean? module 8 O the fi
ID: 1127448 • Letter: D
Question
D Question 34 5 pts what does an economic profit of zero mean? module 8 O the firm is earning equal to its alternative earnings O the firm is earning zero dollars O all the firms in the market are earning the same amount O the firm is earning at the shut down level Question 35 5 pts in perfect competition, why is marginal revenue equal to price? module 9 because the elasticity of demand is equal to negative one O because as the firm makes more sales, it must charge a lower price O o actually, marginal revenue is less than price for the firm O because the firm receives the market price for each sale
Explanation / Answer
Answer : Economic profit of Zero means the firm is earning equal to its oppournity cost. It means that they are able to recover the alternative cost because economic profit included oppournity cost into an account. This shows that they are able to earn accounting profit but not economic profit.
Answer : In perfect competition MR is equal to price because the firm recieves the market price for each sales. It means that they are selling more quantity with same price as the price is not flucated in the perfect competition.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.