Regardless of the cost structure of firms in a competitive market,what can we expect to happen in the long run

Question

Quizplus · Accepted Answer

In the long run, firms in a competitive market are expected to earn zero economic profit. As new firms enter the market attracted by the above-normal profits, the supply of the product increases and the price falls, eventually eliminating the profits of all firms and leaving them with only normal profits. This means that the marginal firm, which is the one earning only normal profits, will be the one that survives in the long run. The other choices are not necessarily true in a competitive market in the long run.

Regardless of the Cost Structure of Firms in a Competitive