In a Long-Run Equilibrium Where Firms Have Identical Costs, It

question 21

True/False

In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic profit.

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Definitions:

Service Revenue

Income earned by providing services as opposed to selling physical goods.

Equipment

Tangible property used in operations, such as machinery and office hardware, which has a useful life longer than one year.

Income Statement

A financial report that shows the revenues, expenses, and profits or losses of a company over a specific period.

Balance Sheet

A financial report detailing a company's financial status at a certain moment, illustrating its assets, liabilities, and shareholders' equity.