If identical firms that remain in a competitive market over the long run make zero economic profit, why do these firms choose to remain in the market?
Because a normal rate of return on their investment is included as part of the opportunity cost of production.
Economics
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What is the general rule for hiring for a perfectly competitive firm? Show it on a graph. What is the demand curve for labor on the graph? Explain
What will be an ideal response?
Economics
Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is:
A. MU C /MU D .
B. one-half.
C. P D /P C .
D. P C /P D
Economics