The MidNight Hour, a local nightclub, earned $100,000 in accounting profit last

Question

The MidNight Hour, a local nightclub, earned $100,000 in accounting profit last year. This year the owner, who had invested $1 million in the club, decided to close the club. What can you say about economic profit (and the rate of return) in the nightclub business?

HoneyBee Farms, a medium-size producer of honey, operates in a market that fits the competitive market definition relatively well. However, honey farmers are assisted by support prices above the price that would prevail in the absence of controls. The owner of HoneyBee Farms, as well as some other honey producers, complain that they can

Explanation / Answer

we can say that the club owner has no profit at all..he might get into negative profits that is he might incurred losses so that he has to close the club Honey will be sold according to the demand they cannot sell all the honey they had ..it depends on the demand . if the demand is less they can have no profits or they might be in a situation to lessen the price.. so they cannot get or earn good profits

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.