Normal profits in a perfectly competitive industry refer to ______ run profits.

Name: Normal profits in a perfectly competitive industry refer to ______ run profits.
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Question

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In a perfectly competitive industry, long-run equilibrium occurs when firms are earning zero economic profits. This means that all resources are being used efficiently, and there is no incentive for firms to enter or exit the industry. Therefore, normal profits refer to zero long-run profits.

Normal Profits in a Perfectly Competitive Industry Refer to ______