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Figure: The Perfectly Competitive Firm
-(Figure: The Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm. The figure shows a perfectly competitive firm that faces demand curve d and maximizes profit. The firm's economic profit in the long run will be:

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Use the following to answer questions:
Figure: The Perfectly Competitive Firm 
-(Figure: The Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm. The figure shows a perfectly competitive firm that faces demand curve d and maximizes profit. The firm's economic profit in the long run will be:

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In the long run, perfectly competitive firms earn zero economic profit due to free entry and exit in the market, which drives prices to the level of average total cost.

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