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Market Supply Curve in the Short Run and Long Run
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Problem 10
Market Supply Curve in the Short Run and Long Run
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11. Perfect Competition / Market Supply Curve in the Short Run and Long Run / Problem 3
Problem 3
In the long run, why do firms earn zero economic profit even if they have positive accounting profits?
A
Because firms' revenues are always equal to their costs.
B
Because economic profit accounts for non-monetary opportunity costs.
C
Because firms do not incur any costs in the long run.
D
Because accounting profit includes all opportunity costs.
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