If some firms in a perfectly competitive industry are earning positive economic profits,then in the long run,the:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, if firms are earning positive economic profits, it attracts new firms into the industry. This increases the supply of the product, which shifts the short-run industry supply curve to the right, leading to a decrease in the price until economic profits are zero.

If Some Firms in a Perfectly Competitive Industry Are Earning