In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true?

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:22 AM

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In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true?

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The theory of perfect competition explicitly assumes that there are no entry or exit barriers to new ...View the full answer

Microeconomics

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