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:

Negotiators Accountable

The responsibility of negotiators to justify their actions and decisions to those they represent or to a higher authority.

Communicating Through Intermediaries

The process of conveying messages or information through a third party rather than directly between the principal parties.

Formal Hierarchy

A structured organizational system where positions and roles are ranked according to levels of authority and responsibility.

Informal Communications

Communication that occurs outside the formal, official communication channels of an organization, often casually and without strict protocols.