Asked by mike
In long-run equilibrium there will be no economic profit in a purely competitive static economy because:
1- barriers to entry will prevent profit from arising.
2-there will be no uncertainty, no innovations, and no monopoly.
3- there will be no need for professional managers and therefore no profit rewards will be needed.
4- the marginal revenue product of capital will be zero
1- barriers to entry will prevent profit from arising.
2-there will be no uncertainty, no innovations, and no monopoly.
3- there will be no need for professional managers and therefore no profit rewards will be needed.
4- the marginal revenue product of capital will be zero
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