3 thoughts on “From the perspective of microeconomics, when manufacturers know that when their economic profits are zero in the long run, why is they still entering an industry?”
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Economic profits = total income- (explicit cost hidden cost),
of accounting profit = total income-explicit cost,
When economic profit = 0, the accounting profit is not zero, and the accounting profit is In order to truly flow into the company's profits from the market, when the economic profit is zero, the company can still obtain accounting profits from the market. This is why manufacturers choose to enter the market when economic profits are zero.
[Note]
The test point of this question lies in the distinction between economic profits and accounting profits.
There are also accounting profits. If they do not enter the market because of this, economic profits are all occupied by people in the market. It is better to divide a cup. There is no economic profit. Earn
The economic profits of most industries are 0
When the economic profit is 0, the accounting profit is not 0. For example, there are still managers' own salary