When would you expect economic profits in an industry to be zero?

Question

Quizplus · Accepted Answer

Economic profits in an industry are expected to be zero when firms have no incentives to enter or exit. This means that the market is in a state of equilibrium, where the existing firms are earning enough profits to cover their opportunity costs, but not so much as to attract new firms into the market. This often occurs in mature industries, where firms have well-established production methods and consumers have stable preferences.

When Would You Expect Economic Profits in an Industry to Be