In long-run equilibrium, economic profits in a perfectly competitive industry are:

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Quizplus · Accepted Answer

In the long-run equilibrium in a perfectly competitive industry, economic profits are zero because there are no barriers to entry or exit, and firms will enter the industry if profits are positive and exit if profits are negative. This process continues until all firms in the industry are earning only a normal profit, where total revenue equals total costs, including the opportunity cost of resources used to produce the goods or services. Therefore, in the long-run equilibrium of a perfectly competitive industry, economic profits cannot be positive or negative, but only zero.

In Long-Run Equilibrium, Economic Profits in a Perfectly Competitive Industry