In a perfectly competitive market,a given short-run equilibrium cannot persist into the long run unless the firms are earning (suffering)

Question

Quizplus · Accepted Answer

In the long run, firms in a perfectly competitive market earn zero economic profit, meaning they cover all opportunity costs, including normal profit. This is because any economic profit or loss would lead to entry or exit of firms, driving profits to normal levels.

In a Perfectly Competitive Market,a Given Short-Run Equilibrium Cannot Persist