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You are confusing economic profits (which includes things like opportunity costs) with accounting profits (which only includes explicit costs). Under perfect c
by dhruval 4y ago
You are confusing economic profits (which includes things like opportunity costs) with accounting profits (which only includes explicit costs).
Under perfect competition the economic profits would approach zero.
But you can still have unlimited of accounting profits, even in a perfectly competitive market provided you are delivering enough value to customers with some sort of unique value proposition.