If long-run equilibrium is present in a competitive market, the typical firm in the market will be
A) making economic losses.
B) making zero economic profit.
C) making economic profit.
D) making a rate of return that is higher than the rate earned in other industries.
E) both c and d are correct.

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms in a competitive market make zero economic profit due to free entry and exit, which drives profits to a normal level.

If Long-Run Equilibrium Is Present in a Competitive Market, the Typical