For an entire perfectly competitive industry, in the long run, economic profit for the industry equals zero.

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Quizplus · Accepted Answer

In the long run, new firms can enter the industry and existing firms can exit. This process continues until economic profit for the industry reaches zero, as firms will either earn normal profit (equal to the opportunity cost of the resources they use) or exit if they cannot cover their costs. Therefore, economic profit for the industry in the long run is zero in a perfectly competitive market. In the long-run, firms in a perfectly competitive industry will adjust their production and entry/exit until economic profit is driven to zero. This is because in a perfectly competitive market, there are no barriers to entry or exit, so firms will enter the market and compete to earn profits, which eventually drives down prices until profits are eliminated.

For an Entire Perfectly Competitive Industry, in the Long Run