"Economic profits are less than or at most equal to accounting profits." Do you agree or disagree? Explain
What will be an ideal response?
Agree. Economic profits are accounting profits less implicit costs, or the opportunity costs of inputs. Since the opportunity costs of capital and labor inputs are never negative, economic profits are less than or at most equal to accounting profits.
Economics
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What is meant by the term "long-run competitive equilibrium?
What will be an ideal response?
Economics
Contracts are enforced by
a. the firms that make the contracts through buy-out clauses b. law firms that specialize in contract enforcement c. corporations specializing in contract writing and enforcement d. the government through the judicial system e. both households and firms through customer relations departments
Economics