In the long run the perfect competitor makes

A) zero economic profits and zero accounting profits.
B) some economic profits but zero accounting profits.
C) some accounting profits but no economic profits.
D) some accounting profits and some economic profits.

Economic Profits

The excess of total revenues over total costs, including both explicit costs and opportunity costs, indicating a return beyond the normal profit level.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Perfect Competitor

A theoretical market structure where many firms sell homogeneous products, entry and exit from the market are free, and all participants have perfect information.