The concept of economic rent assumes that over the long run, firms in competitive markets will

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The concept of economic rent assumes that in the long run, firms in competitive markets will earn average economic profits of zero. This is because in a perfectly competitive market, there are no barriers to entry and exit, meaning that new firms can easily enter the market and compete away any economic profits. However, firms may still earn rent for factors that are in limited supply, such as land or unique talents, but these rents are not related to the firm's production or competitive position.

The Concept of Economic Rent Assumes That Over the Long