Northwest Arkansas is a metropolitan area with a rapidly growing population of over 500,000 residents in the principal municipalities of Fayetteville, Springdale, Rogers, Bentonville, and Siloam Springs. A GLOBAL CENTER OF EXCELLENCE IN RETAIL, FOOD, AND LOGISTICS.
A market economy is an economic system in which individuals own most of the resources - land, labor, and capital - and control their use through voluntary decisions made in the marketplace. It is a system in which the government plays a small role. In this type of economy, two forces - self-interest and competition - play a very important role.
Economic Losses lead to exit of existing firms: See figure 11-9 in textbook Page396 c. Due to entry and exit, the long-run equilibrium market price is at the level equal to the minimum point of firmâs ATC curve. See graph below. All the firms in a perfectly competitive market earn economic profit equal to zero. (Since economic profit is the profit after accounting for the implicit cost of a firm, zero economic profit means positive accounting profit.