Asked by
Maria Gomez
on Oct 27, 2024Verified
In the long run,when economic profit is zero,firms leave the industry,which will increase the market supply and increase the price until economic profits are positive.
Economic Profit
The disparity measure in between overall returns and full expenses, including both exposed and indirect costs.
Market Supply
The total amount of a product that sellers are willing and able to sell across all relevant price levels within a given market.
Long Run
A period in which all factors of production and costs are variable, allowing firms to adjust fully to market changes.
- Pinpoint the specific conditions that dictate when organizations should embark on entering or withdrawing from the sector.
Verified Answer
BC
Learning Objectives
- Pinpoint the specific conditions that dictate when organizations should embark on entering or withdrawing from the sector.