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Answer :
Final answer:
A firm's economic profit tends to be feeble because this profitability can attract new competitors, which increase competition, lower prices, and reduce the economic profit. Economic profit considers both explicit and implicit costs, including the opportunity cost of the next best alternative.
Explanation:
The assertion that when economic profit exists for a firm, it is very feeble, might stem from the inherent competitiveness in most markets. Economic profit, different from accounting profit, considers both explicit and implicit costs, including opportunity costs. When a firm is earning an economic profit, it signifies it's outperforming the next best alternative. However, these profits tend to be feeble because they can attract new firms into the market, leading to increased competition, which can reduce prices and subsequently the economic profit.
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