What are the main sources of economic profits and economies of scale?
Question:
What are the main sources of economic profits and economies of scale?
Profits and costs:
The term 'profit' is actually an economic profit, which is associated with the producers and the production of goods and services. It can be calculated as the difference between total revenue and total cost.
The total economic cost is the total cost of production, which includes the cost of inputs and the opportunity cost of each factor of production.
Answer and Explanation: 1
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View this answerEconomies of scale;
The state of 'Economies of scale' defines the level of cost advantages of the firms and companies, resulted from the low costs of...
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Chapter 3 / Lesson 11Learn what the definition of economic profit is, and understand how to calculate it using an equation.