In the Long Run, a Perfectly Competitive Firm Makes Zero

question 349

Essay

In the long run, a perfectly competitive firm makes zero economic profit. What incentive does the firm have to stay in business if it is making zero economic profit?

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Definitions:

Cerebral Cortex

The outer layer of neural tissue of the cerebrum in the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Cerebrum

The Cerebrum is the largest part of the brain, encompassing areas involved in sensory processing, voluntary movements, learning, memory, and complex cognitive processes.

Corpus Callosum

The corpus callosum is a thick band of nerve fibers that divides the cerebral cortex lobes into left and right hemispheres, facilitating communication between the two sides of the brain.

Hippocampus

A region of the brain that is associated with memory formation and spatial navigation.