For monopolistically competitive businesses, the factor that ultimately causes zero economic profitability is: newly added
What Exactly Is Economic Gain (or Loss)?
The difference between the money made from selling an output and the price of all the inputs plus any opportunity costs is what is known as an economic profit or loss. By deducting potential costs and explicit costs from generated revenue, economic profit is calculated.
Opportunity costs are a kind of implicit cost that management determines and that vary depending on various events and viewpoints.
Analysis of accounting profit and economic profit frequently goes hand in hand. The profit that a corporation reports as accounting profit appears on its income statement. Accounting profit is a measure of actual inflows and outflows that is necessary for a company to have financial transparency.
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Answer:
1. The Total Expenditure curve shifts Upward
2. Falls
3. Increase
Explanation:
Economic equilibrium is a state where economic forces are balanced. Total Expenditure curve shifts upward.
There will be a fall in inventories level
Supply and demand for goods are equal which is equilibrium in the market. Business firms will increase the quantity of goods and services they produce.
In perfect competition, firms will be able to earn economic profits in the short run.
<h3>What is perfect competition?</h3>
A perfect competition is characterized by many buyers and sellers of homogenous goods and services.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
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The Business Plan of an organization should show the following key components: Value Proposition, Operations, Components and Functions, projected revenue, and expenditure.
<h3>What is a Business Plan?</h3>
This refers to a document that spells out the future goals, plans and activities of a business as well as how it plans to achieve goals those objectives.
A business plan is useful for:
- Startups or existing businesses that want to attract investors
- An existing business that is planning to expand, scale up or introduce new products
- An existing business that is looking at a merger and acquisition.
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