Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic...

1 answer below »
Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the market over the last few years. Based on this information, does Omega operate in a perfectly competitive market? Why or why not? 250 to 300 words
Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
124 Votes
Economic profits play a crucial role in the perfectly competitive market. The existence of economic
profits in a particular industry attracts new firms to the industry in the long run. On the other hand, in
case of losses firms leave the industry. This entry and exit of the firms happen till the point the economic
profits reach to zero, the normal profit situation. All the firms in the perfectly competitive market earn
zero economic...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Attach File