In long-run equilibrium,a competitive firm can earn zero profit only if its technology exhibits

Question

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In the long-run equilibrium of a competitive market, firms are earning zero economic profit. To achieve this, the firm's production function must exhibit constant returns to scale, where doubling all inputs results in a doubling of output. This means that the firm is not able to increase its output proportionally more than its inputs, ensuring that the firm cannot earn above-normal profits. If the production function exhibits increasing returns to scale, the firm can earn above-normal profits, and if it exhibits decreasing returns to scale, the firm would not be able to cover its costs and would exit the industry. Regressive returns to scale is not a valid concept in economics.

In Long-Run Equilibrium,a Competitive Firm Can Earn Zero Profit Only