Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit.

Name: Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit.
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Question

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In a perfectly competitive market, the ease of entry and exit allows new firms to enter when existing firms are making profits, driving prices down, and ensures that firms can exit when they are making losses, leading to zero economic profit in the long run.

Easy Entry and Exit Ensure That Perfectly Competitive Firms Cannot