In long-run equilibrium,

Question

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In the long-run equilibrium of a perfectly competitive market, the firms earn only normal profits. This is because any economic profits earned in the short-run will attract new firms into the industry, increasing competition, and driving down prices and profits. As a result, in the long-run, firms in a perfectly competitive market will earn only what is required to cover their opportunity costs and give them a normal rate of return on their investment.

In Long-Run Equilibrium