Why must normal profits be counted as a cost, according to economists?
Please provide the best answer for the statement.
Normal profit is the implicit cost of doing a particular business. It represents the forgone entrepreneurial income you would have received doing another business. If you don’t receive an equivalent or greater income to your normal profit, you would face the incentive to change businesses.
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What are the effects of a tariff on a good on various groups and on the total surplus in the country that imposes the tariff?
What will be an ideal response?
Gross Domestic Product accurately measures the environmental costs of producing all goods and services
a. True b. False Indicate whether the statement is true or false
Suppose that a new iPod with 30 new features costs $100 more to produce and buy than does the previous version. The $100 price increase
A. is not added to the inflation rate because consumer electronics are not part of the consumer market basket. B. is not added to the inflation rate because it represents an improvement in quality. C. is added to the inflation rate. D. is divided by the additional benefits and then added to the inflation rate.
An unexpected reduction in inflation would tend to benefit which of the following?
A. neither creditors nor debtors B. debtors C. creditors and debtors D. creditors