When a competitive market is in long-run equilibrium,the firms will be making economic profits but not normal profits.

Question

Quizplus · Accepted Answer

In a long-run equilibrium, firms will earn only normal profits, not economic profits. Economic profits are earned only in the short run, whereas in the long run, competition forces firms to adjust their production and pricing strategies, leading to normal profits.

When a Competitive Market Is in Long-Run Equilibrium,the Firms Will