ECON 1050 Chapter 12: Economics-1 (1) (dragged) 4
17 Sep 2016
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Maximum profit is not always a positive economic profit. To see if a firm is making a profit or incurring a loss compare the firm"s atc at the profit- maximizing output with the market price. Output, price, and profit in the long run. In short-run equilibrium, a firm might make an economic profit, break even, or incur an economic loss. In the long-run equilibrium, firms break even because firms can enter or exit the market. New firms enter an industry in which existing firms make an economic profit.
