In the Long Run, Perfectly Competitive Firms Cannot Make an Economic

question 394

Essay

In the long run, perfectly competitive firms cannot make an economic profit. Why?

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Definitions:

Semi-Annual

Occurring twice a year, or every six months.

Quoted

Refers to the current price of a security, commodity, or index as provided by a market or exchange.

Callable Bond

A type of bond that the issuer has the right to repay before its maturity date, at a predetermined call price.

Sinking Fund

A reserve fund established by a company to repay debt or replace a major asset in the future.