Interpret this dialogue: A: How can competitive profits be zero in the long run? Who will work

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Interpret this dialogue:

A: "How can competitive profits be zero in the long run? Who will work for nothing?"

B: "It is only excess profits that are wiped out by competition. Managers get paid for thire work; owners get a normal return on capital in competitive long-run equilibrium-no more, no less."

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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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Question Posted: Dec 05, 2015 03:30 AM

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Interpret this dialogue: A: How can competitive profits be zero in the long run? Who will work

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The definition of pure economic profit includes the opportunity cost of owners labor and capital inv...View the full answer

Economics

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