Refer to the accompanying figure to answer the following questions.

-If the price is $5,the firm is making

Question

Refer to the accompanying figure to answer the following questions.
 
-If the price is $5,the firm is making

Quizplus · Accepted Answer

In a perfectly competitive market, firms will enter and exit the market until they are making zero economic profit, which is the condition for long-run equilibrium. A price that leads to zero profits indicates that the market has reached this equilibrium, and no firms have the incentive to enter or exit.

Refer to the Accompanying Figure to Answer the Following Questions