List three primary ways in which profits above "normal" interest rate levels can be earned
1 . Monopoly power: If a firm can establish a monopoly with some or all of its products, even for a short while, it can use that monopoly power to earn monopoly profits.
2 . Risk bearing: Firms often engage in financially risky activities, subjecting the capitalist investors in the firm to some financial peril. The extra income pays the firm for bearing risk. A few lucky individuals make out well in this process, but many suffer heavy losses.
3 . Returns to innovation: This is perhaps the most important of all for social welfare. People who introduce new outputs or new production methods or find new markets for the commodities that the firm sells are called innovative entrepreneurs. The first entrepreneur able to innovate and market a desirable new product or employ a new cost-saving machine will garner a higher profit than what an uninnovative business manager would earn.
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Under fair-returns price regulation:
A) deadweight loss is likely to be maximized. B) deadweight loss is likely to be minimized. C) firms are less likely to innovate because they earn zero profits. D) firms are more likely to innovate because they earn positive profits.
When white males resist to share responsibilities with members of a minority group, it is termed as:
a. employer prejudice. b. consumer prejudice c. worker prejudice. d. statistical discrimination. e. occupational segregation.