Society as a whole benefits from:

Question

Quizplus · Accepted Answer

Zero economic profits mean that resources are being allocated efficiently and effectively in the long run. This leads to lower costs for consumers, increase in quality of products and services, and innovation in the market, all of which benefits society as a whole in the long run. Negative economic profits may signal market inefficiencies, while positive economic profits may lead to monopoly power and higher prices for consumers. Negative economic profits and positive accounting profits are not desirable as they indicate a decrease in economic value for the firm and may lead to bankruptcy.

Society as a Whole Benefits From