If Identical Firms That Remain in a Competitive Market Over

question 122

Essay

If identical firms that remain in a competitive market over the long run make zero economic profit, why do these firms choose to remain in the market?

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Definitions:

Operant Conditioning

A type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher.

Batteries

Devices consisting of one or more electrochemical cells that store and provide electrical energy by converting chemical energy.

Instruction

The act or process of teaching or providing knowledge to someone, often involving a systematic method or approach to imparting information.

Primary Reinforcers

Stimuli that are naturally reinforcing because they satisfy basic biological needs, such as food, water, or shelter.