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 in a perfectly competitive industry earn zero economic profits in the long run, it means that there is no incentive for firms to enter or exit the industry. The number of firms in the industry will remain the same, but the market price may adjust in the short run to ensure that all firms are earning zero economic profits. This means that the industry supply curve will not shift in the long run.

If All Firms in a Perfectly Competitive Industry Earn Zero