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:

Fait Accompli

A situation or action that has already been completed and is irreversible, often presented to others as an accomplished event.

Bargaining Range

The spectrum of possible agreements in a negotiation process, bounded by the least favorable terms acceptable to each party.

Opening Stance

The initial position or attitude taken by a party at the beginning of a negotiation or discussion.

Counteroffer

A proposal made in response to an initial offer, suggesting different terms or conditions.