Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 21

"Economic profits are like fly paper-they will attract any capital that happens to be flying nearby." Explain the real world relevance of this colorful statement. Would the statement be correct if "economic profits" were replaced with "accounting profits"? Can you think of any situation where the statement as written might not be true?