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    can anyone help me with this question please?

    "explain how economic profits act as a signal for resource allocation in a market economy in the long run."
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    (Original post by powderpuffgirl)
    can anyone help me with this question please?

    "explain how economic profits act as a signal for resource allocation in a market economy in the long run."
    Well, in the long run, factors of production aren't fixed. So someone will see that another company is making high profits and will decide to move into that market - think how the iPad led to everyone else developing a tablet.

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