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Business, 14.01.2020 22:31 svarner2001
Aproducer would decide to produce in a competitive market in which she will earn zero profit in the long run because
a. in the short run her profit is positive.
b. the zero profit in the long run is, in fact, zero accounting profit, and only matters on the books.
c. the producer has a high cost of exiting this market, and counting that cost, it’s better for her to continue operating at zero profit.
d. at zero profit, her revenue will cover all her costs, both explicit and implicit (opportunity cost).
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Aproducer would decide to produce in a competitive market in which she will earn zero profit in the...
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