In a perfectly competitive market,a marginal entrant ________.

Question

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In a perfectly competitive market, there are no barriers to entry, so any firm can enter and exit the market freely. As a result, a marginal entrant, which is a firm that is considering entering the market but is indifferent between entering and not entering, will not earn economic profits in the long run. This is because in a perfectly competitive market, there is no market power, so firms cannot charge a price above the equilibrium price. In the long run, all firms in the market will earn zero economic profits. In addition, a marginal entrant does not determine the market price, as the market price is determined by the interaction of supply and demand. Finally, a marginal entrant is not necessarily the first firm to enter the market, as other firms may have already entered before it.

In a Perfectly Competitive Market,a Marginal Entrant ________