Asked by
Diamon Sparks
on Oct 14, 2024
Verified
It is possible to have an industry in which all firms make zero economic profits in long-run equilibrium.
Economic Profits
The difference between total revenue earned from production and the total opportunity costs of all inputs used in the production process.
Long-Run Equilibrium
A state in which economic forces such as supply and demand are balanced over the long term, with all factors of production and markets adjusting fully to any changes.
- Assess the components that determine the supply curves in industries and their long-term adjustments for equilibrium.
- Evaluate the role of fixed, variable, and marginal costs in short-run and long-run production decisions.
Verified Answer
MN
Learning Objectives
- Assess the components that determine the supply curves in industries and their long-term adjustments for equilibrium.
- Evaluate the role of fixed, variable, and marginal costs in short-run and long-run production decisions.