Answer:
A. becomes positive once the value of the next best use of resources used in production is included
Explanation:
Economic profit is accounting profit less implicit cost or opportunity cost.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Accounting profit is total revenue less total cost.
If in the short run firms are earning economic profit, in the long run firms would enter into the industry and this would drive economic profit to zero. While economic profit is zero, accounting profit would be postive. So the firm would still be earning accounting profit.
I hope my answer helps you
Answer:
Big buy must sell at large at a smaller price which will give tough time to Radio Shack and this is the threat that RadioShack don't want to bear.
Explanation:
Best Buy will choose large quantity because it helps in satisfying the needs of public at large at a lower price. This will force RadioShack to lower its price which will result in losses and this fear of losses will act as a enterance deterent. Though the profit on this strategy is lower but it will safeguard future revenues as RadioShack will not enter the market or get defeated very quickly.
250000/50000 = $5 per unit
$ 5 per unit + $20 per unit
Unit cost = $25 per unit
Answer:
A service guarantee is a way to avoid compensating customers for a service failure.
Explanation:
