Question
Explain why, in a competitive market, firms only generate normal profits in the long run, whereas they can generate super normal profits in the short
Explain why, in a competitive market, firms only generate normal profits in the long run, whereas they can generate super normal profits in the short run?
Step by Step Solution
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Step: 1
In a perfectly competitive marketfirms can only generate normal profits in the long run due to sever...
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
3rd edition
2901133951482, 1133951481, 978-1133951483
