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:

Intellectual Disability

A condition of limited mental ability, indicated by an intelligence score of 70 or below and difficulty in adapting to the demands of life; varies from mild to profound.

Terman's Studies

A series of longitudinal studies led by Lewis Terman that focused on the development and characteristics of gifted children over their lifespan.

IQ Scores

Quantitative measures used to assess human intelligence, typically derived from standardized tests designed to evaluate a variety of cognitive abilities.

Creativity

The ability to produce novel and valuable ideas.