In perfect competition,the assumption of easy entry and exit implies that,in the _____ run,all firms in the industry will earn _____ economic profits.

Question

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In perfect competition, firms can easily enter or exit the industry in the long run. This means that if any firm is earning positive economic profits in the short run, new firms will enter the industry, increasing the supply and driving down the price. This, in turn, will lead to a decrease in profits for all firms in the long run, and eventually, all firms will earn zero economic profits. Therefore, in the long run, all firms in a perfectly competitive market will earn zero economic profits.

In Perfect Competition,the Assumption of Easy Entry and Exit Implies