in-the-long-run-why-do-firms-earn-zero-economic-profit-even-if-they-have-positiv

Question

In the long run, why do firms earn zero economic profit even if they have positive accounting profits?

Accepted Answer

Because economic profit accounts for non-monetary opportunity costs.

Answer

Because firms' revenues are always equal to their costs.

Answer

Because firms do not incur any costs in the long run.

Answer

Because accounting profit includes all opportunity costs.