If the firms in a market have accounting profits that are larger than their implicit costs, then, in the long run, the market ______ curve will shift to the ______.

If the firms in a market have accounting profits that are larger than their implicit costs, then, in the long run, the market curve will shift to the .

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 14E

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Concept explainers

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?

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If the firms in a market have accounting profits that are larger than their implicit costs, then, in the long run, the market ______ curve will shift to the ______.

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