In perfect competition and ____ economic profit will move towards zero

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In perfect competition, there are many firms producing standardized products, and there are no barriers to entry or exit. This means that any firm earning economic profit will face new competition from potential entrants, who will drive down prices until economic profit becomes zero. Monopoly, monopolistic competition, and oligopoly all involve barriers to entry that allow firms to maintain some degree of market power and economic profit. A natural monopoly arises when it is more efficient for a single firm to produce the entire output of the industry, but such monopolies are relatively rare and typically subject to regulation to prevent excessive profits.

In Perfect Competition and ____ Economic Profit Will Move Towards