Would a firm earning zero economic profit continue to produce, even in the long run? In...

 

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Would a firm earning zero economic profit continue to produce, even in the long run? In long-run competitive equilibrium, a firm earning zero economic profit A. will not continue to produce because it could earn a better return in another industry. B. will continue to produce because such profit is as high a return as could be earned elsewhere. C. will not continue to produce because such profit corresponds with negative accounting profit. D. will not continue to produce because this return is not covering its opportunity costs. E. will not continue to produce because it would be better off shutting down. Would a firm earning zero economic profit continue to produce, even in the long run? In long-run competitive equilibrium, a firm earning zero economic profit A. will not continue to produce because it could earn a better return in another industry. B. will continue to produce because such profit is as high a return as could be earned elsewhere. C. will not continue to produce because such profit corresponds with negative accounting profit. D. will not continue to produce because this return is not covering its opportunity costs. E. will not continue to produce because it would be better off shutting down.

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In a longrun competitive equilibrium a firm earning zero economic profit ANSWER B Will con... View the full answer