The main characteristic of the perfectly competitive market that causes economic profits and losses to go to zero in the long run is

Question

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The main characteristic that causes economic profits and losses to go to zero in the long run in a perfectly competitive market is free entry and exit. This allows new firms to enter the market when there are profits, increasing supply and driving profits down, and allows firms to exit the market when there are losses, decreasing supply and reducing losses.

The Main Characteristic of the Perfectly Competitive Market That Causes