If an industry is showing a 5 percent rate of return in terms of Economic Profits, then no other
firms will enter into this market because standard microeconomic theory tells us that a minimum
Economic Profit of at least 10 percent should exist before any firm would enter the marketplace.
True – Bubble A
False – Bubble B

Question

10-12-2022
Business

contestada

If an industry is showing a 5 percent rate of return in terms of Economic Profits, then no other
firms will enter into this market because standard microeconomic theory tells us that a minimum
Economic Profit of at least 10 percent should exist before any firm would enter the marketplace.
True – Bubble A
False – Bubble B

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akankshasharma92 akankshasharma92 · Answer 1 · 2022-12-18T07:29:51+01:00

Before every company enters the market, there must be an economic profit of at least 10%. resources are divided by sectors. The difference between the proceeds from the sale of a product

the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit Opportunity costs are a class of hidden expenses that are decided by management and change depending industry on various events and viewpoints. Revenue is reduced by explicit and opportunity expenses to get at economic profit. Opportunity costs are the profits a company forgoes when deciding between options. Economic gain is analyzed internally.

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