In the long run,when economic profit is zero,firms leave the industry,which will increase the market supply and increase the price until economic profits are positive.

Question

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In the long run, when economic profit is zero, it indicates that firms are earning just enough to cover their opportunity costs, which is a condition of perfect competition and equilibrium. Firms do not have an incentive to leave the industry under these conditions, and market supply and price remain stable, not increasing to make economic profits positive.

In the Long Run,when Economic Profit Is Zero,firms Leave the Industry,which