What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?

Question

Quizplus · Accepted Answer

In long-run competitive equilibrium, firms are earning zero economic profit. This means that their total revenue covers all of their costs, including both variable and fixed costs. Therefore, the largest possible loss a firm can experience while still producing in a perfectly competitive market in the long run is zero.

What Is the Largest Possible Loss That Is Consistent with a Firm