If all firms in a perfectly competitive industry earn zero economic profits, in the long run, the:

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Quizplus · Accepted Answer

If all firms earn zero economic profits in the long run, it means that the market price equals the minimum average total cost. In this case, there is no incentive for any new firms to enter the industry, and existing firms have no reason to exit. As a result, the number of firms and the industry supply curve will remain constant, and there will be no shift.

If All Firms in a Perfectly Competitive Industry Earn Zero