In a perfectly competitive market,when will the process of entry and exit end for firms in the market

Question

Quizplus · Accepted Answer

In a perfectly competitive market, when economic profits are zero, entry and exit of firms will reach equilibrium. If economic profits are positive, more firms will enter the market, which will increase supply and lower price. If economic profits are negative, some firms will exit the market, which will decrease supply and raise price. When economic profits are zero, there is no incentive for firms to enter or exit the market, and the market is in long-run equilibrium.

In a Perfectly Competitive Market,when Will the Process of Entry