Because of easy entry into and exit from a market, perfectly competitive firms operate at the lowest possible cost, charge the lowest price that they can without going out of business, and earn no economic profit in the long run.

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In perfectly competitive markets, the presence of many firms, identical products, and ease of entry and exit ensures that firms operate efficiently at the lowest cost. They charge a price equal to marginal costs, leading to zero economic profit in the long run as any potential profit attracts new entrants, increasing supply and driving prices down to the level of costs.

Because of Easy Entry into and Exit from a Market