In the Long Run, a Perfectly Competitive Firm Neither Earns

question 180

True/False

In the long run, a perfectly competitive firm neither earns economic profit nor incurs economic losses.

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Definitions:

Breakeven Analysis

The calculation to determine the sales volume at which a business neither makes a profit nor incurs a loss.

Minimum Sales Volume

The lowest quantity of sales that a company needs to achieve within a specific period to cover its direct and indirect costs.

Sales Volume

The total quantity of products or services sold by a company within a specific period of time.

Price

is the amount of money expected, required, or given in payment for something.