If There Are No Profits in Competitive Equilibrium, Why Do

question 196

Essay

If there are no profits in competitive equilibrium, why do firms produce? How can they stay in business?

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Definitions:

Social Identity

A person's identity as it relates to the groups they belong to.

Gender

A social construct regarding the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Distinctiveness

The quality of being markedly different or unique in comparison to others.

Delay of Gratification

Delay of gratification denotes the ability to resist the temptation for an immediate reward and wait for a later, often greater reward.