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Before producer’s equilibrium when MR>MC, the firm earns only
- a)Normal Profit
- b)Normal loss
- c)Abnormal loss
- d)Abnormal profit
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Before producer’s equilibrium when MR>MC, the firm earns only...
If a firm makes more than normal profit it is called super-normal profit. Supernormal profit is also called economic profit, and abnormal profit, and is earned when total revenue is greater than the total costs.
Total profits = total revenue (TR) – total costs (TC)
Abnormal Profit = MR > MC
Total profits = total revenue (TR) – total costs (TC)
Abnormal Profit = MR > MC
Most Upvoted Answer
Before producer’s equilibrium when MR>MC, the firm earns only...
If a firm makes more than normal profit, it is called super-normal profit. Supernormal profit is also called economic profit and abnormal profit and is earned when total revenue is greater than the total costs.
Total profits = total revenue (TR) – total costs (TC)
Abnormal Profit = MR > MC
Total profits = total revenue (TR) – total costs (TC)
Abnormal Profit = MR > MC
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Before producer’s equilibrium when MR>MC, the firm earns only...
S can start producing a product, they need to go through several steps in the production process. These steps include:
1. Idea generation: The first step in the production process is to come up with an idea for a product. This could be a new product or an improvement to an existing product.
2. Research and development: Once an idea has been generated, the producer needs to conduct research and development to determine if the idea is feasible. This includes market research, technical research, and prototyping.
3. Design: After the idea has been researched and developed, the producer needs to design the product. This includes creating detailed plans and specifications for the product.
4. Sourcing: Once the design is complete, the producer needs to source the necessary materials and components for the product. This may involve finding suppliers and negotiating contracts.
5. Manufacturing: Once all the necessary materials and components have been sourced, the producer can begin manufacturing the product. This involves setting up production facilities, hiring workers, and implementing quality control measures.
6. Testing: After the product has been manufactured, it needs to be tested to ensure that it meets the required standards and specifications. This may involve conducting various tests and inspections.
7. Packaging and labeling: Once the product has been tested and approved, it needs to be packaged and labeled. This includes designing and producing packaging materials and creating labels with product information.
8. Distribution: After the product has been packaged and labeled, it is ready for distribution. This involves shipping the product to retailers or directly to customers.
9. Marketing and sales: Once the product is in distribution, the producer needs to market and sell the product. This includes creating promotional materials, advertising, and sales strategies.
10. Customer service: Finally, the producer needs to provide customer service to ensure customer satisfaction. This includes handling inquiries, addressing complaints, and providing support.
Overall, the production process involves several steps that a producer needs to go through before they can start producing a product. Each step is important and contributes to the successful production and sale of the product.
1. Idea generation: The first step in the production process is to come up with an idea for a product. This could be a new product or an improvement to an existing product.
2. Research and development: Once an idea has been generated, the producer needs to conduct research and development to determine if the idea is feasible. This includes market research, technical research, and prototyping.
3. Design: After the idea has been researched and developed, the producer needs to design the product. This includes creating detailed plans and specifications for the product.
4. Sourcing: Once the design is complete, the producer needs to source the necessary materials and components for the product. This may involve finding suppliers and negotiating contracts.
5. Manufacturing: Once all the necessary materials and components have been sourced, the producer can begin manufacturing the product. This involves setting up production facilities, hiring workers, and implementing quality control measures.
6. Testing: After the product has been manufactured, it needs to be tested to ensure that it meets the required standards and specifications. This may involve conducting various tests and inspections.
7. Packaging and labeling: Once the product has been tested and approved, it needs to be packaged and labeled. This includes designing and producing packaging materials and creating labels with product information.
8. Distribution: After the product has been packaged and labeled, it is ready for distribution. This involves shipping the product to retailers or directly to customers.
9. Marketing and sales: Once the product is in distribution, the producer needs to market and sell the product. This includes creating promotional materials, advertising, and sales strategies.
10. Customer service: Finally, the producer needs to provide customer service to ensure customer satisfaction. This includes handling inquiries, addressing complaints, and providing support.
Overall, the production process involves several steps that a producer needs to go through before they can start producing a product. Each step is important and contributes to the successful production and sale of the product.
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Before producer’s equilibrium when MR>MC, the firm earns onlya)Normal Profitb)Normal lossc)Abnormal lossd)Abnormal profitCorrect answer is option 'D'. Can you explain this answer?
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