In the Long Run,firms in a Competitive Market Make Zero

question 8

True/False

In the long run,firms in a competitive market make zero economic profit.This induces most firms to leave the industry.

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Definitions:

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it.

Algorithm

A step-by-step procedure or formula for solving a problem or completing a task, often used in computing and mathematics.

Optimal Solution

The most efficient and effective answer to a problem, maximizing benefits while minimizing costs and drawbacks.

Confirmation Bias

A cognitive bias that involves favoring information that confirms pre-existing beliefs or ideas.