1 thought on “Western economics postgraduate questions: Since they know that their economic profits will be zero in the long run, why do they have to enter a industry”
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Generally, the answer to this question is controlled within 2000 words (that is, the position of the answer is just over), the main points:
1. The economic profit does not mean accounting profit. There may be a lot of benefits. When companies choose to enter an industry, they often first consider the positive and negative level of accounting profit;
2. After the company chooses to enter a certain industry, it may obtain a scale economy, so as to reflect more profits in the accounting statement Therefore, companies may choose to enter
3. Although the economic profit of an industry will be zero in the long run, in the process of short -term to long -term Break Peter's "destructive creation", that is, after entering an industry, enterprises may achieve the effect of "destructive creation", so as to obtain the rent of "entrepreneur talents", so entrepreneurs will choose to enter; r; r; n (To be honest, now looking at the entrance examination questions of economics, it's really fucking ...)