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In the Long Run, Perfectly Competitive Firms Make Zero Economic

Question 379

Multiple Choice

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


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

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