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Should the profits earned by (the central) Baskin Robbins Ice Cream Company be theoretically considered an economic profit or are they an implicit cost --
Should the profits earned by (the central) Baskin Robbins Ice Cream Company be theoretically considered an economic profit or are they an implicit cost -- a royalty due to Mr. Robbins for creating 31 flavors? (Ignore the role of the Baskin-Robbins franchisees)
Asked differently, how do economists explain how/why firms in monopolistic competition theoretically always break even?
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