In competitive markets where firms are observed to be exiting the market, the firms that remain will obtain economic profits in the long run.

Name: In competitive markets where firms are observed to be exiting the market, the firms that remain will obtain economic profits in the long run.
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Question

​In competitive markets where firms are observed to be exiting the market, the firms that remain will obtain economic profits in the long run.

Quizplus · Accepted Answer

In competitive markets, the entry and exit of firms lead to a situation where, in the long run, firms earn zero economic profit, as prices adjust to reflect the costs of production, including normal profit.

​In Competitive Markets Where Firms Are Observed to Be Exiting

In Competitive Markets Where Firms Are Observed to Be Exiting