In the long run, a perfectly competitive firm makes

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In the long run, a perfectly competitive firm makes zero economic profit because if firms are making positive economic profit, new firms will enter the market, increasing competition and lowering prices, thus driving economic profit to zero. Similarly, if firms are making negative economic profit (economic loss), some firms will exit the market, decreasing competition and increasing prices, thus driving economic profit back to zero.

In the Long Run, a Perfectly Competitive Firm Makes