Figure 7-G
-Refer to Figure 7-G.The firm is now able to sell more of its lawn care services at a higher price and as a result will be able to earn economic profits:

Question

Figure 7-G 
-Refer to Figure 7-G.The firm is now able to sell more of its lawn care services at a higher price and as a result will be able to earn economic profits:

Quizplus · Accepted Answer

In a perfectly competitive market, firms can earn economic profits in the short run if they can sell at a higher price. However, in the long run, new firms will enter the market, driving prices down to the level of average costs, resulting in zero economic profits.

Figure 7-G -Refer to Figure 7-G.The Firm Is Now Able to Sell