Suppose that some firms in a perfectly competitive industry are incurring negative economic profits. The:

Name: Suppose that some firms in a perfectly competitive industry are incurring negative economic profits. The:
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When firms in a perfectly competitive industry are incurring negative economic profits, it indicates that the industry is not in long-run equilibrium. In the long run, firms will exit the industry if they cannot cover their costs, leading to adjustments towards equilibrium.

Suppose That Some Firms in a Perfectly Competitive Industry Are