In the long run, a perfectly competitive firm earns no accounting profits.

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In the long run, a perfectly competitive firm earns normal profit, which is considered a zero economic profit, but it can still have accounting profits. Normal profit is the minimum level of profit needed for a company to remain competitive in the market, and it is included in the firm's total costs, thus not considered an economic profit but rather the cost of doing business.

In the Long Run, a Perfectly Competitive Firm Earns No