Lawn-mowing service is a perfectly competitive industry.Alex's Lawn Mowing Service should close if Alex expects his long-run economic profits to equal zero.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, firms can continue to operate in the long run even if they earn zero economic profits, as this means they are covering all their opportunity costs, including normal profit.

Lawn-Mowing Service Is a Perfectly Competitive Industry