An In the News article discusses "Too Many Sellers: The Woes of T-Shirt Shops." If T-shirt shops are perfectly competitive firms,then

Question

Quizplus · Accepted Answer

If T-shirt shops are perfectly competitive, then the barriers to entry are low, meaning that new firms can enter the market easily. This can lead to an increase in the number of sellers, causing market saturation and lower profits for individual firms. Therefore, while T-shirt shops may earn economic profits in the short run, in the long run, profits will approach zero due to the ease of entry and competition.

An in the News Article Discusses "Too Many Sellers: the Woes