In a "Free market" system, supply and demand forces affect the production and consumption decisions. There is little to no price control in such a system.
The first blank could also be "perfectly competitive" or "market efficient" system. The second blank can also be "deadweight loss". This means that producers are price takers, not price makers, and that the quantity produced and the equilibrium price of goods are determined by the free market. Usually this implies a very large number of firms producing identical products, with no collusion among them.
Answer:
-$1,500
Explanation:
Calculation for the economic profit earn
Using this formula
Economic profit =Investment amount ×(Return on investment-Current interest rate)
Let plug in the formula
Economic profit =$50,000×(0.05 - 0.08)
Economic profit =$50,000×(-0.03)
Economic profit = -$1,500
Therefore you earn an economic profit of -$1,500
The gross value is the product minus the costs of raw materials and energy. Gross value allows a company to see the true value they are gaining after the raw materials and time spent to produce the good are complete. The value is an economic measure that allows a company to see where they stand after the contribution of materials and workers are taken out of the equation.
Answer:
A is the correct answer I think hope this helps