Is it true that in the long run it is impossible for firms functioning in a perfectly competitive market to earn positive economic profits? Explain your answer
What will be an ideal response?
No, even in a perfectly competitive market, firms may earn positive economic profits in the long run. This happens when firms do not have identical cost structures. For example, whenever there is an increase in demand for a good in the market, the price of the good goes u
Economics
You might also like to view...
An increase in which of the following would be most likely to increase long-run economic growth?
a) taxes b) interest rates c) consumer spending d) productivity e) value of domestic currency
Economics
Suggest two policies the government could pursue to help increase the accumulation of knowledge
What will be an ideal response?
Economics