It is a false statement that profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run.
The rule of profit maximization says that MC = MR where the MC means marginal costs and MR means marginal revenue.
As all costs are variable in the long run, then, a firm must always set its profit to zero by ceasing operation.
Therefore, It is false that profit-maximizing rule leaves room for those cases.
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