Asked by Keyara Lewis on Jun 30, 2024
Verified
Competitive firms can earn positive profits in the
A) Long run only
B) Long run and the short run
C) Short run only
D) All of the above
Competitive Firms
Businesses that operate in markets with many sellers, where each seller has no control over the market price and must accept the market price for its products or services.
Positive Profits
A situation where a business or individual earns more money than expended, indicating financial success and sustainability.
Long Run
The long run is a period in economics sufficient for all markets to reach equilibrium, where all inputs can be considered variable, and companies can adjust all costs.
- Comprehend the notion of economic profits and their tendency to diminish to zero over time in competitive market environments.
Verified Answer
Learning Objectives
- Comprehend the notion of economic profits and their tendency to diminish to zero over time in competitive market environments.
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