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    Exam 12: Perfect Competition
  5. Question
    In the Long Run, a Perfectly Competitive Firm Makes Zero
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In the Long Run, a Perfectly Competitive Firm Makes Zero

Question 349

Question 349

Essay

In the long run, a perfectly competitive firm makes zero economic profit. What incentive does the firm have to stay in business if it is making zero economic profit?

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Zero economic profits do not mean no pro...

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