In a perfectly competitive market,all firms in the long run earn ________.

Question

Quizplus · Accepted Answer

In the long run, firms in a perfectly competitive market will enter or exit until all economic profits are driven to zero. This means that firms will earn enough revenue to cover all their costs, including opportunity costs, but they will not earn any extra economic profit. Accounting profit may still be positive but it does not take opportunity costs into account.

In a Perfectly Competitive Market,all Firms in the Long Run