Explain Why Perfectly Competitive Firms Cannot Earn Positive Economic Profits

question 18

Essay

Explain why perfectly competitive firms cannot earn positive economic profits in the long run.

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Definitions:

Routine Tasks

Regular and repetitive activities that form part of the daily operations in a work or personal environment.

Process

A sequence of tasks or measures pursued to attain a specific goal.

Team Factor

Any element or condition influencing the performance, dynamics, or outcome of a team's activities or projects.

Tacit Coordination

An unspoken understanding among team members on how tasks will be executed, often developed through experience and mutual knowledge.