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In the Long Run, Perfectly Competitive Firms Make Zero Economic

Question 116

Multiple Choice

In the long run, perfectly competitive firms make zero economic profit (their owners earn a normal profit) because


A) there are many buyers and sellers.
B) any economic loss would increase the demand for the good, thereby raising its price.
C) any economic profit would attract newcomers to the industry.
D) the firms are incompetent.

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