A perfectly competitive firm will have an economic profit of zero if, at its profit- maximising output, its marginal revenue equals its

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In a perfectly competitive market, a firm achieves an economic profit of zero when its price (or marginal revenue) equals its average total cost at the profit-maximizing output. This condition signifies that the firm is covering all its costs, including both variable and fixed costs, but is not making an economic profit above that.

A Perfectly Competitive Firm Will Have an Economic Profit of Zero