When economic profits in an industry are zero:

Name: When economic profits in an industry are zero:
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Question

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When economic profits in an industry are zero, it indicates that firms are earning a normal profit, which means they are covering all their opportunity costs, including a return on investment that they could have earned in the next best alternative. This situation suggests that firms are doing as well as they could do in other markets, hence they have no economic incentive to move to another market.

When Economic Profits in an Industry Are Zero