In the long run,perfectly competitive firms earn zero economic profit;this means that each firm is

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In the long run, perfectly competitive firms earn zero economic profit because there are no barriers to entry or exit in the industry. This means that any profits earned in the short run will attract new firms to the market, driving down prices and eliminating profits in the long run. As a result, firms in a perfectly competitive market will be content to stay in their market and earn zero economic profit. Choice A is incorrect because moving into a more profitable market implies that there are barriers to entry, which is not the case in a perfectly competitive market. Choice C is incorrect because perfectly competitive markets have easy entry and exit, so there are always entrants and exiters. Choice D is incorrect because earning negative accounting profit implies that the firm's costs exceed its revenue, which is not the case in a perfectly competitive market where firms earn enough revenue to cover all their costs in the long run.

In the Long Run,perfectly Competitive Firms Earn Zero Economic Profit;this