In perfect competition,a change in fixed cost will:

Name: In perfect competition,a change in fixed cost will:
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In perfect competition, firms earn zero profit in the long run. Thus, a change in fixed cost will encourage entry or exit of firms in the long run, which will change the overall supply in the market. As a result, the market price will change enough to leave firms earning zero profits. A change in fixed cost will not directly affect output or variable cost in the short run.

In Perfect Competition,a Change in Fixed Cost Will