Market equilibrium and disequilibrium: Equilibrium is a state where there are no net external forces acting upon the system. The market is in equilibrium when the quantity of the good that buyers want to buy is equal to the quantity that sellers want to sell.
When there is either a surplus or a shortage of the product, the market is in a state of disequilibrium. When the market is in disequilibrium, there are market forces that tend to push the market towards the equilibrium point, where the quantity supplied equals the quantity demanded.Market Equilibrium is the point where the supply curve and the demand curve intersect, it is the point where the quantity of goods demanded is equal to the quantity of goods supplied.Long Answer:In the given graph, the supply and demand curve intersect at the point E, which is the market equilibrium point. The quantity supplied at this point is 5000 units, while the quantity demanded is also 5000 units.
The equilibrium price for this product is $5 per unit. If the price of the product was below $5 per unit, the quantity demanded would be higher than the quantity supplied, and the market would be in a state of shortage. This would increase the price of the product. If the price of the product was above $5 per unit, the quantity demanded would be lower than the quantity supplied, and the market would be in a state of surplus. This would decrease the price of the product. If there is a change in either demand or supply curve, this will cause the market equilibrium point to shift. For example, if there is an increase in demand, this will cause the demand curve to shift to the right.
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2008 1 Mar Started business with $1,000 cash.
credit or debit
Answer:
The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.
The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain.
yes, no matter what company say, they need money for funding for "social change"
A new parent-focused website is adding a blog to attract readers. Which of the following elements are likely to be discussed at the project plan approval meeting?
a.)
The editing guidelines document for the new blog
b.)
Preferred methods for communicating schedule changes
c.)
A list of topics that will be covered each week in the new blog
d.)
A review of the number of days assigned to testing the changes to the website
Answer: d
Explanation: :()
What is the woman in white being pressured to do at the beginning of the film?
Marry At the opening of the movie, the woman in white being pressured is Dr. Bates.
Lemuel Gulliver, a surgeon and sea captain who travels to distant parts of the world, tells the story of four adventures in Gulliver's Travels, a first-person narrative. The major antagonist of the 2010 fantasy adventure comedy film Gulliver's Travels, which is based on the 18th-century novel of the same name by Jonathan Swift, is General Edward Edwardian (also known as General Edward or Edward). The Brobdingnagians are enormous; on average, they stand 60 feet tall, and their lands and creatures are as enormous. Due to Gulliver's extreme vulnerability in this society, it becomes reasonable that the satire progressively focuses on the brittleness (and grotesqueness) of the human body.
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________leads to better quality and lower prices?
A. Scarcity
B. Competition
C. Monopolies
D. Studying macroeconomics
Please help!!
Answer:
a
Explanation:
because it makes sense in the sentence
question 2 (exercise 2.1 from textbook) in this exercise, we will analyze the supply-demand equilibrium of a monocentric city. the standard set-up is assumed in that the city is circular, all jobs are located at a central business district (cbd) and residents commute radially to work at the cbd. here distance is measured in blocks. the residents consume two goods: bread (c) and dwelling size (q). the price of bread is $1 and the price per square foot of housing is denoted by p. now for ease of calculations, we will make some special simplifying assumptions about landuse: (i) all dwellings must contain exactly 1500 square feet of floor space, so regardless of location q
In this exercise, we are analyzing the supply-demand equilibrium of a monocentric city, taking into account the consumption of two goods: bread (C) and dwelling size (Q).
The price of bread is $1 and the price per square foot of housing is denoted by P. We are also given some simplifying assumptions about land use, namely that all dwellings must contain exactly 1500 square feet of floor space, regardless of location. This means that the main factor that determines the price of housing is the distance from the CBD.
To analyze the supply-demand equilibrium of this monocentric city, we need to consider the relationship between the price of housing (P), the distance from the CBD (D), and the demand for housing (Q). The demand for housing will be affected by the price of bread (C) and the cost of commuting (T), which is determined by the distance from the CBD.
The supply-demand equilibrium is reached when the quantity of housing demanded is equal to the quantity of housing supplied. This occurs at the point where the demand curve intersects the supply curve. In a monocentric city, the supply curve will be upward-sloping, as the price of housing increases with distance from the CBD. The demand curve will be downward-sloping, as the demand for housing decreases with distance from the CBD.
To find the supply-demand equilibrium, we need to solve for the price of housing (P) and the distance from the CBD (D) that satisfy the following equations:
Q = 1500 - P*D
C + T = P*D
By substituting the second equation into the first, we can solve for the price of housing (P) in terms of the distance from the CBD (D):
1500 - P*D = C + T
P = (1500 - C - T)/D
This equation shows that the price of housing (P) is determined by the distance from the CBD (D), the price of bread (C), and the cost of commuting (T). By plugging this equation back into the first equation, we can solve for the distance from the CBD (D) in terms of the price of housing (P):
Q = 1500 - P*D
D = (1500 - Q)/P
This equation shows that the distance from the CBD (D) is determined by the price of housing (P) and the demand for housing (Q). By solving these equations simultaneously, we can find the supply-demand equilibrium of this monocentric city.
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What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.
Answer:
A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOU3. When filling out a W-4 form, in what situation would a teen want to claim exemption from federal taxes being withheld from their paycheck? O They don't feel like paying taxes. O They make more than the minimum income threshold. O They don't make more than the minimum income threshold.
Answer:
They don't make more than the minimum income threshold
Explanation:
^
When filling out a w-4 form, if a teen do not make more than the minimum income threshold can claim exemption from federal income taxes being withheld from their paycheck.
What are taxes?Taxes are frequently defined as mandatory levies levied on the people for the benefit of the state. Every penny of taxpayer money will be included in the post of state income from the tax sector. Its purpose is to fund central and native government spending for community welfare.
If an employee is eligible, he or she can also use Form W-4, which instructs the government not to deduct any federal income tax from his or her wages. To be eligible for this exemption, the employee must have had no tax liability the previous year and expect to have no tax liability this year.
Therefore, a teen should not make more than the minimum income threshold to claim the exemption from federal taxes being withheld from their paycheck.
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There is a specialty store that you like to go to when you are craving jelly beans. The price is reasonable at $1.30 per pound. The store is a bit of a distance away and you could purchase the same jelly beans at your neighborhood supermarket, but the cost is a little more at $2.10 per pound. You spend about $3 on gas every time you go to the specialty store. How do you know if you are getting enough of the jelly beans to make the trip worthwhile? What two equations would you use to determine your break-even point? (Let C stand for the total cost and x represent the amount of jelly beans.)
Answer:
-You know if you are getting enough of the jelly beans to make the trip worthwhile when the amount you purchased makes the total cost at the specialty store lower than the total cost at the supermarket and this is when you purchase more than 3.75 pounds of jelly beans.
-The two equations would be:
C=1.30x+3
C=2.10x
Explanation:
From the information given, the total cost at the specialty store would be the result of multiplying the price per pound for the number of pounds plus the amount you spend in gas everytime you go there, which is:
C=1.30x+3
Also, the total cost at your neighborhood supermarket would be the result of multiplying the price per pound for the number of pounds:
C=2.10x
Now, you can say that the price at the specialty store is equal to the price at the supermarket and solve for x to find the amount of jelly beans that would make the total cost at both places the same which would be the break-even point:
1.30x+3=2.10x
3=2.10x-1.30x
3=0.8x
x=3/0.8
x=3.75
You know if you are getting enough of the jelly beans to make the trip worthwhile when the amount you purchased makes the total cost at the specialty store lower than the total cost at the supermarket and this is when you purchase more than 3.75 pounds of jelly beans. Also, the two equations would be:
C=1.30x+3
C=2.10x
influences of Business environment,
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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Explain two reasons why trade union membership may decline in a country.
There can be a few reasons why exchange union membership may decay in a nation. Here are two conceivable reasons:
1. Changes within the nature of work:
2. Lawful and political components:
1. Changes within the nature of work:
As the nature of work changes, the pertinence and request of exchange unions may too decrease. For case, in businesses where specialists are progressively working on an independent or gig premise, or in divisions where mechanization and innovation are supplanting human labor, there may be less of a sense of collective bartering control.
In such cases, laborers may not see the esteem in joining an exchange union or may feel that unions are not able to enough speak to their interface.
2. Lawful and political components:
Changes in legitimate and political components can affect exchange union enrollment. For case, changes in labor laws or governance arrangements can make it more difficult for exchange unions to function or can debilitate their bartering control.
Essentially, changes in open demeanors towards unions or a decrease in union-friendly media scope may too contribute to declining participation.
In common, declining exchange union participation can have critical suggestions for laborers, as unions regularly play a key part in securing workers' rights and arranging reasonable compensation and benefits. In arrange to address declining union enrollment, it may be fundamental to adapt union methodologies to reflect changes within the nature of work, as well as to lock in with lawful and political factors in arrange to preserve the significance and viability of unions.
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Peggy started work after graduation and started investing.
Why do you think Peggy would have decided to invest?
A. to keep her finances liquid for emergencies
B. to earn compound interest
C. to minimize the risk of losing money
D. to build on her retirement fund
E. to take out a student loan for further education
Answer:
c
Explanation:
assuming a reserve ratio of 20 percent, if a bank receives $100,000 in deposits how much can the bank loan out? a. $20,000 b. $80,000 c. $100,000 d. $500,000
If a bank has a reserve ratio of 20 percent, it can loan out $80,000.
The reserve ratio represents the percentage of a bank's deposits that it must hold as reserves, either in the form of cash or as deposits with the central bank. In this case, with a reserve ratio of 20 percent, it means that the bank is required to keep 20 percent of its total deposits as reserves and can loan out the remaining amount.
If the bank receives $100,000 in deposits, it must hold 20 percent of this amount as reserves. Therefore, the bank will keep $20,000 ($100,000 multiplied by 20 percent) as reserves. The remaining $80,000 is available for the bank to loan out to borrowers.
This means that option B, $80,000, is the correct answer. The bank can loan out this amount while still maintaining the required reserve ratio of 20 percent.
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If a capitalist country were to focus on taking care of underprivileged citizens and bridging the income gap, it would be best described as which economy?
A. communist
B. mixed
C. socialist
D. state
E. command
Answer:
C?
Explanation:
I Don't really know so please don't be mad
If a capitalist country were to focus on taking care of underprivileged citizens and bridging the income gap, it would be best described as a socialist economy. The correct option is C.
How do socialists explain inequality?The competitive and egotistical characteristics of capitalism are to blame for the disparity that exists in society. Socialists disagree that people are born with equal abilities, but they do think that because everyone contributes to society, they should all be paid equally.
Socialist principles include free access to products and services, production for use rather than profit, equal distribution of wealth and material resources among all people, and the end of market competition.
Thus, the ideal selection is option C.
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Jama has just become owner of a franchise
fast-food restaurant. He pays an initial fee of
$150,000 plus $8,000 per month for advertising
and management support to the franchisor. How
much will he pay in all to the franchisor during his
first year in business?
Answer:
$246,000
Explanation:
Jama will pay the initial fee plus 12 monthly payments to the franchisor in his first year.
The initial fee is $150,000
Monthly payments are $8000.
For the year, the monthly payments will total
=$8,000 x 12
=$96,000
In total, he will pay
=$96,000 +$150,000
=$246,000
Accenture is helping a major retailer migrate to the Cloud. The client has aggressive timelines and is worried that security will be compromised. How can Accenture help the client?
Hello. You forgot to show the answer options. The options are:
• Accenture should advise the client to wait until the next phase to implement security controls.
• Accenture should develop a custom solution and suggest a timeline extension.
• Accenture has developed accelerators that can deploy specific security controls in hours, a task that used to take months.
• Accenture recommends that the additional security controls are not needed since the Cloud is secure by default.
Answer:
Accenture has developed accelerators that can deploy specific security controls in hours, a task that used to take months.
Explanation:
Accenture will promote a good management of the retailer's files that will go to the cloud promoting the security that it needs. However, this is a slow process, which requires very delicate and precise protocols, which can cause the implementation of security systems to take months to be ready. However, as the retailer has very tight deadlines, Accenture can develop accelerators that will streamline this process.
The Work Breakdown Structure can be best be thought of as an effective aid for ___________ Communications
Answer:
The Work Breakdown Structure can be best thought of as an effective aid for Stakeholder Communications.
JesterBoards is a small snowboard manufacturing company with fixed costs of $219 per day and total cost of $4,211 per day for a daily output of 19 boards. What does the average cost per board tend to as production increases? Round to the nearest cent. $ per board
As production increases, the average cost per board tends to decrease. This is because the fixed costs are spread over a larger number of boards, reducing the cost per unit.
In the case of JesterBoards, the fixed costs are $219 per day, which do not change regardless of the number of boards produced. The total cost, however, is $4,211 per day for a daily output of 19 boards.
To calculate the average cost per board, we divide the total cost by the number of boards produced. In this case, the average cost per board is approximately $221.63.
Now, as production increases, let's say the number of boards produced per day doubles to 38. The fixed costs of $219 per day remain the same, but the total cost would likely increase due to variable costs associated with producing more boards.
However, since the fixed costs remain constant and are spread over a larger number of boards, the average cost per board would decrease. This is because the fixed costs have a smaller impact on the cost per unit when production increases.
Therefore, as production increases, the average cost per board for JesterBoards would tend to decrease, reflecting economies of scale and the spreading of fixed costs over a larger production volume.
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Pathos? The cost of irtamal conmen equity for Patios is 2. Hound to two decimal places)
The cost of internal common equity for Pathos is 9.02%, calculated using the Dividend Growth Model with a dividend per share of $0.50, a current stock price of $25.30, and a growth rate of 8%.
To calculate the cost of internal common equity, we can use the dividend growth model, also known as the Gordon growth model. The formula for this model is:
Cost of Equity = (Dividends per Share / Current Stock Price) + Growth Rate
Given information:
Dividends per Share (DPS) = $0.50
Current Stock Price = $25.30
Growth Rate = 8%
First, we need to calculate the dividends per share for the next year. We can do this by multiplying the current dividends per share by (1 + growth rate):
DPS_next_year = DPS * (1 + Growth Rate)
= $0.50 * (1 + 0.08)
= $0.54
Next, we can substitute the values into the cost of equity formula:
Cost of Equity = ($0.54 / $25.30) + 0.08
= 0.0213 + 0.08
≈ 0.1013
However, we also need to consider the flotation costs. The flotation costs are given as 11% of the market price. To adjust for this, we can subtract the flotation costs percentage from the cost of equity:
Adjusted Cost of Equity = Cost of Equity - Flotation Costs Percentage
= 0.1013 - (0.11 * 0.1013)
= 0.1013 - 0.0111
≈ 0.0902
Converting this to a percentage gives us the cost of internal common equity for Pathos:
Cost of Internal Common Equity = 0.0902 * 100
≈ 9.02%
Rounding this to two decimal places, the cost of internal common equity for Pathos is approximately 9.02%.
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the capital allocation line can be described as the a. line on which lie all portfolios that offer the same utility to a particular investor. b. investment opportunity set formed with a risky asset and a risk-free asset. c. investment opportunity set formed with two risky assets. d. line on which lie all portfolios with the same expected rate of return and different standard deviations.
The capital allocation line can be described as the investment opportunity set formed with a risky asset and a risk-free asset. The correct option is b.
What is the difference between the capital market line and the capital allocation line?The capital market line (CML) denotes portfolios that combine risk and return optimally. The capital allocation line (CML) is a subset of the asset allocation line (CAL), with the risk portfolio being the market portfolio. As a result, the Sharpe ratio of the market portfolio is the slope of the CML.
The Capital Allocation Line (CAL) is a graphical representation of the investment opportunity set formed with a risky asset and a risk-free asset. The CAL shows the trade-off between risk and return for efficient portfolios.
The risk-free asset is represented by a point on the y-axis of the graph, with a risk-free rate of return. The risky asset is represented by a portfolio of risky assets, which offers a range of expected returns and standard deviations.
Thus, the ideal selection is option b.
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You find yourself in a family dinner in which a heated conversation about the role of the financial system is taking place. A relative argues that, "...the financial system is totally useless, I see no point why we should have financial markets, maybe it would be a good idea to abolish them". Provide a short counterargument to your relative explaining what is the role of financial markets in a modern economy, what they actually do, and why it is probably a bad idea to abolish them.
The financial system and financial markets are a means for companies, governments, and individuals to access funding, manage risk, and invest in various financial instruments.
The financial system and financial markets play a crucial role in modern economies. They serve as a platform for companies, governments, and individuals to access funding, manage risk, and invest in various financial instruments. Financial markets facilitate the flow of funds from savers to borrowers, helping businesses and governments access the capital they need for growth and development.
They also enable efficient allocation of resources by directing funds to the most productive investments. Furthermore, financial markets provide a platform for trading assets like stocks and bonds, allowing investors to manage their risk and diversify their portfolios. Without financial markets, it would be difficult for companies to raise capital for expansion, governments to finance infrastructure projects, and individuals to save and invest for their future.
Abolishing financial markets would lead to a lack of liquidity in financial instruments, making it difficult for businesses and individuals to access funds when needed. It would also lead to a lack of transparency and accountability in financial transactions, which could lead to fraud and corruption.
Furthermore, financial markets promote competition among financial institutions, leading to better services and lower costs for consumers. They also allow investors to diversify their portfolios, reducing risks and increasing returns.
In conclusion, financial markets play a vital role in modern economies, and abolishing them would have severe consequences. It is important to acknowledge their value and work towards improving their functioning to benefit all stakeholders.
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Which section of a business plan gives details about a business’s core products and services?
The section of a business plan talks about a business’s core products and services, and their features and benefits to the consumers.
Answer:
Executive summary.
Explanation:
A business plan can be defined as a formally written document that comprises of the financial and operational objectives (plans) of a business firm.
Basically, a business plan is a roadmap or guide that outline the goals of a business, methods on how to achieve those goals, and the timeframe required to achieve those goals.
A business plan should be written in such a way that it comprises of all the important informations that an investor looks out for, in order to convince him or her to invest money in the business. Thus, the main section (contents) of a business plan include the following;
I. Title page.
II. Market analysis and competition.
III. Industry overview.
IV. Operating plan.
V. Sales and marketing plan.
VI. Financial plan.
VII. Management plan.
VIII. Appendices and exhibits.
IX. Executive summary.
The executive summary section of a business plan talks about a business’s core products and services, and their features and benefits to the consumers. Thus, the executive summary is the most important section of a business plan because it provides a concise summary of the business and it's the first section to be seen by an investor.
Gregory is aiming to get the _ symbol for his products, which is awarded by the _
Answer: environmental friendly refrigerators prestigious , engineering agency
Explanation: Separated by Commas .
if tesla wants to open a new factory in arizona that is identical to the one it has in california in order to double its production, it needs:
Opening a new factory in Arizona identical to the one in California would require careful planning, investment, and coordination in various areas such as location, permits, infrastructure, workforce, equipment, and supply chain. This would enable Tesla to effectively double its production capacity and meet the increased demand for its products.
If Tesla wants to open a new factory in Arizona that is identical to the one it has in California in order to double its production, it needs several key things:
1. Location: Tesla would need to find a suitable site in Arizona to build the new factory. Factors such as access to transportation routes, availability of resources, and proximity to suppliers and markets would be important considerations.
2. Permits and Approvals: Tesla would need to obtain the necessary permits and approvals from local authorities and government agencies to construct and operate the new factory. This includes environmental assessments, zoning permits, and building permits.
3. Infrastructure: Tesla would need to ensure that the necessary infrastructure is in place, such as roads, utilities (electricity, water, etc.), and telecommunications. These are crucial for the smooth operation of the factory.
4. Workforce: Tesla would need to recruit and train a new workforce in Arizona. This would involve hiring skilled workers, providing training programs, and establishing HR processes to support the new employees.
5. Equipment and Machinery: Tesla would need to procure the necessary equipment and machinery to replicate the production line from the California factory. This includes manufacturing equipment, robots, assembly lines, and other tools.
6. Supply Chain: Tesla would need to establish a new supply chain in Arizona to ensure a steady flow of raw materials, components, and parts to support the production process. This includes identifying local suppliers or arranging transportation from existing suppliers.
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goods are the products businesses use to produce other goods.
Next
Answer:
so whats your question
Explanation:
Tuity fruity beverage company's operating activities for the year are listed below. purchases $140 comma 500 operating expenses 80 comma 600 beginning inventory 12 comma 900 ending inventory 18 comma 300 sales revenue 300 comma 700 what is the gross profit for the year?
Answer:
$135,100
Explanation:
Given :
Cost of purchasing: $140,500
Operating expenses :$80,600
beginning inventory:$12,900
Ending inventory:$18,300
sales revenue :$300,700
Gross profit of the year can be determined by
Cost of purchasing + beginning inventory - Ending inventory
=140,500 + 12,900 -18,300
=$153,400-$18,300
=$135,100
The three-step process to determine cash provided or used by financing activities includes all of the following steps except: Multiple choice question. determine the cash effects using reconstruction analysis. identify changes in financing-related accounts. report their cash flow effects. identify an increase or decrease in cash.
In a cash flow, there are some steps taken for easy transaction. The three-stage process to determine cash provided or used by financing activities includes all of the following steps except to identify an increase or decrease in cash.
Transactions are grouped into the three types of activities in the statement of cash flows. they are operating, investing, and financing.
The three-step analysis to determine cash provided or used by investing activities includes:
To reporting the cash flow effects To identify changes in investing-related accounts To explain the changes using T-accounts and reconstructed entriesThe cash flow types is often used by companies to track and analyze to know the liquidity and solvency of the business.
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Answer: identify an increase or decrease in cash.
Explanation:
Derby Phones is considering the introduction of a newmodel of headphones with the following price and cost characteristics. Sale price----$285 per unit, variable costs--140 per unit, and fixed costs 348,000 per month. What number must Derby sell to make an operating profit of $159,500 for the month
The units of headphones that must be sold to have an operating profit of $159,500 is 3497.
What is the units sold that would yield an operating profit of $159,500?
Operating profit is total profit that is earned from the daily business operations of a business. Operating profit is total revenue less fixed cost and variable cost.
How many units must be sold to have an operating profit of $159,500 = operating profit + fixed cost / (selling price - variable cost)
(159,000 + $348,000) / (285 - 140) = 3497
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A company may choose a ______________ in the introduction stage of their new product in order to help recover costs of development and/or to capitalize on the price insensitivity of early buyers.
A company may choose a pricing strategy known as "skimming" in the introduction stage of their new product in order to help recover costs of development and/or to capitalize on the price insensitivity of early buyers.
Skimming is a pricing strategy where a company initially sets a high price for their new product. This allows the company to quickly recover the costs associated with product development, such as research and development expenses, marketing costs, and production costs. By setting a high price, the company can maximize their profits in the early stages when demand for the product may be relatively inelastic.
During the introduction stage, a company may have invested significant resources in research, development, and marketing, making it crucial to recoup these costs as quickly as possible. Additionally, early adopters of new products are often willing to pay a premium price to be among the first to own the latest technology or innovation. This price insensitivity of early buyers can be leveraged by the company through the skimming strategy.
However, it is important to note that skimming is not a sustainable long-term pricing strategy. As competitors enter the market and demand becomes more elastic, the company may need to adjust their pricing strategy to remain competitive and capture a larger market share.
A company may choose the skimming pricing strategy in the introduction stage of their new product to recover costs and take advantage of the price insensitivity of early buyers. This strategy allows the company to maximize profits in the initial stages, but it may need to be adjusted as the market evolves.
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capital accumulation. the difference between normal and economic profits. creative destruction. derived demand.
The difference between normal and economic profits is creative destruction.
Creative destruction is an economic concept most closely associated with the Austrian-born economist Joseph Schumpeter since the 1950s. Schumpeter derived it from Karl's Marxian studies and popularized it as his theory of economic innovation and business his cycles. Sometimes called a Schumpeter storm.
Disruption can be defined as the decline of a practice, process, product, or service over time, followed by something more innovative and disruptive. It is based on the principle that old assumptions must be broken in order for new innovations to benefit from existing resources and energies.
An example of disruption in history is Henry Ford's assembly line and how it revolutionized the automotive industry. But it also shut out the old market and put many workers out of work.
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