The fact that a firm is a price-setter does not ensure it will make a positive economic profit in the short run and over time.

Question

Quizplus · Accepted Answer

Being a price-setter does not guarantee that the firm's revenue will exceed its costs, which is necessary for making a positive economic profit. Other factors such as competition, changes in market demand, and production costs can also affect the firm's profit level.

The Fact That a Firm Is a Price-Setter Does Not