Firms in perfectly competitive markets are confined to making profits in the short run, but never a loss.

Name: Firms in perfectly competitive markets are confined to making profits in the short run, but never a loss.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

Firms in perfectly competitive markets can earn profits in the short run, but they can also incur losses. In the long run, however, firms in perfectly competitive markets will make zero economic profits due to the entry and exit of firms.

Firms in Perfectly Competitive Markets Are Confined to Making Profits