Economic profit is different from the general business term ‘profit’. The general assumption is that firms are producing goods to maximize profits. However, economists also
Barriers to Entry Definition Barriers to Entry are designed to prevent potential competitors from entering the market. Some barriers to entry are placed by the
Durable goods are those goods that don’t wear out quickly and last over a long period. Examples of durable goods include land, cars, and appliances.
The Theory of Production explains the principles by which a business firm decides how much of each commodity that it sells (its “outputs” or “products”)
In the Cost Theory, there are two types of costs associated with production – Fixed Costs and Variable Costs. In the short-run, at least one