In the long run when a perfectly competitive firm experiences negative economic profits,

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In the long run, firms in a perfectly competitive market will exit the industry if they are not earning economic profits. This is because there are no barriers to entry, so new firms can easily enter the market and compete for profits. As firms exit the market, the supply curve shifts to the left, reducing the quantity supplied and increasing the market price. This process continues until all remaining firms are earning zero economic profits.

In the Long Run When a Perfectly Competitive Firm Experiences