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GWU Zero Economic Profits Discussion

by | Mar 18, 2023 | Uncategorized | 0 comments

  

I’m working on a macro economics discussion question and need an explanation and answer to help me learn.

Ms. Smith says, “In the long run, since economic profits are zero, firms will have no incentive to produce output in a perfectly competitive market. Why would anyone produce and sell a product if they are going to earn no profits?” Do you agree?

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