4 ms·
Economic profit is still there, it's abnormal profits that would go to zero. With zero EP the opportunity cost of staying in business would be to high. With 0
by rchaud 3y ago
Economic profit is still there, it's abnormal profits that would go to zero. With zero EP the opportunity cost of staying in business would be to high.
With 0 AP, the industry is in equilibrium, with no companies dropping out, and no companies entering the market.
- sclarisse 3y agoThe economic profit is literally defined as the accounting-type profits, minus the opportunity costs. When the opportunity cost is large like that you are describing negative economic profit.