Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run.
1
Expert's answer
2018-04-13T10:05:11-0400
Firms can only make normal profits in the long run, although they can make abnormal (super-normal) profits in the short run. If firms receive profits in the short run, then new firms will enter the market, until in the long run the number of firms will be such that P = MR = MC = LATC and LATC will be at its minimum, so all firms will make only normal profits.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
Finding a professional expert in "partial differential equations" in the advanced level is difficult.
You can find this expert in "Assignmentexpert.com" with confidence.
Exceptional experts! I appreciate your help. God bless you!
Comments
Leave a comment