Augi's Art Shack sells art supplies in a perfectly competitive market. The firm is currently realizing economic profits of $85,000 in the short run. In the long run we would expect Augi's to

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In a perfectly competitive market, economic profits in the long run tend to be zero because new firms will enter the market when they see existing firms making a profit, increasing supply and driving down prices until profits are eliminated.

Augi's Art Shack Sells Art Supplies in a Perfectly Competitive