Is It True That in the Long Run It Is

question 23

Essay

Is it true that in the long run it is impossible for firms functioning in a perfectly competitive market to earn positive economic profits? Explain your answer.

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Definitions:

Fraud

Fraud refers to wrongful or criminal deception intended to result in financial or personal gain.

Good Faith

Acting with honesty and sincerity without intention to deceive or defraud in a legal or transactional context.

Subrogation

The process by which an insurance company, having paid a loss to its insured, acquires the legal right to pursue any claims the insured may have against a third party responsible for the loss.

Sequential Liability

Sequential liability refers to the responsibility shared among different parties in a sequence, where one party's financial obligations are dependent on the payment or performance of another.