Use the following to answer questions:
-(Table: Cherry Farm) Look at the table Cherry Farm. If all farms are the same size, how much economic profit will each farm earn when the industry is in long-run equilibrium?

Question

Use the following to answer questions: 
-(Table: Cherry Farm) Look at the table Cherry Farm. If all farms are the same size, how much economic profit will each farm earn when the industry is in long-run equilibrium?

Quizplus · Accepted Answer

In long-run equilibrium, firms in a perfectly competitive market earn zero economic profit because any positive or negative profits would lead to entry or exit of firms, driving profits to zero.

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