ECN 104 Study Guide - Final Guide: European Cooperation In Science And Technology, Opportunity Cost
Document Summary
Www. notesolution. com state is that it will not earn the interest on the cash it would have generated if the asset were sold. Therefore this interest amount is to be included in the normal profit. N firm j an organization that combines factors of production to produce a good or service or some combination of goods and services. N capital j any durable inputs to the production process, such as tools, machinery, and buildings. N perfectly competitive markets: markets in which each individual firm has no influence over the market price of the products it sells, perfectly competitive firms are price takers, four conditions are required for a perfectly competitive market: S all firms sell the same standardized product. S the market has many buyers and sellers, and each buys or sells only a small fraction of the total quantity exchanged. They know the market price and quality of the standardized product.
