Positive economics profits in the long run

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Firms like McDonald's and Wendy's sell hamburgers, salads, and other products that are differentiated in nature. While numerous fast-food restaurants exist in most locations, the differentiated nature of the firms' products permits them to charge prices that are in excess of marginal cost.

b. Given their current menus, explain what level of economic profit these firms can expect to make in the long run?

c. What strategies could the firms use to increase the possibilities of earning positive economics profits in the long run?

Reference no: EM131173855

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