At the end of the process of entry and exit, it is possible that some firms in a competitive market are making positive economic profit.

Question

Quizplus · Accepted Answer

Some firms in a competitive market can make positive economic profit due to factors such as unique product differentiation, strategic location, or superior cost efficiency. However, in the long run, these profits are likely to attract new entrants to the market, increasing competition and reducing profits back to zero.

At the End of the Process of Entry and Exit