An In the News article discusses "T-Shirt Shop Owner's Lament: Too Many T-Shirt Shops." If T-shirt shops are perfectly competitive firms,then

Question

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If T-shirt shops are perfectly competitive firms, the fact that there are too many T-shirt shops implies that the barriers to entry are low. In a perfectly competitive market, firms will enter the market until there are no economic profits to be made. Therefore, if there are too many T-shirt shops, it suggests that new firms are able to easily enter the market and that the existing firms are not making economic profits in the long run.

An in the News Article Discusses "T-Shirt Shop Owner's Lament