Asked by Damir Hollis on May 29, 2024
Verified
In the long-run,a perfectly competitive firm will achieve
A) An average rate of return
B) Above average profits
C) Losses
D) Economic Profits
Economic Profits
The excess of total revenues over total costs, including both explicit and implicit costs.
Perfectly Competitive
Describes a market structure where numerous small firms compete against each other, and products are considered perfect substitutes.
Average Rate
A mathematical mean or typical value of a set of rates, often used in reference to interest rates, pricing, or other financial statistics.
- Grasp the concept of economic profits and how they approach zero in the long run in competitive markets.
Verified Answer
Learning Objectives
- Grasp the concept of economic profits and how they approach zero in the long run in competitive markets.
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