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Sources and Determinants of Profit
![Long-Run Profit for Perfect Competition](../../../../../../../../../figures.boundless-cdn.com/20527/raw/nomics-perfect-competition.jpg)
Long-Run Profit for Perfect Competition
In the long run for a firm in a competitive market, there is zero economic profit. Graphically, this is seen at the intersection of the price level with the minimum point of the average total cost (ATC) curve. If the price level were set above ATC's minimum point, there would be positive economic profit; if the price level were set below ATC's minimum, there would be negative economic profit.
Source
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"Economics Perfect competition."
http://en.wikipedia.org/wiki/File:Economics_Perfect_competition.svg
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