Explain Why Economic Profits in All Perfectly Competitive Markets Will

question 19

Essay

Explain why economic profits in all perfectly competitive markets will tend toward zero in the long run.

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Definitions:

Copyright

A form of protection provided to the creators of original works in the areas of literature, music, drama, choreography, art, motion pictures, sound recordings, and architecture.

Patent

A grant of exclusive property rights on inventions through the U.S. and other governments.

Trade Secret

Confidential information that provides companies with a competitive edge and is not in the public domain, such as formulas, patterns, compilations, programs, devices, methods, techniques, or processes.

Nondisclosure Agreement

A legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties.