The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is complete when

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In a perfectly competitive industry, the process of adjustment to a new long-run equilibrium involves firms entering or exiting the industry until profits are driven to zero. At this point, no firms have an incentive to enter or exit the industry. Additionally, every firm has adjusted its production process to make the most efficient use of its resources, which means that all firms are operating at their minimum average total cost. Finally, investors in the industry receive the standard economy-wide rate of return on their investments, which is also known as a normal profit. Therefore, when all of these conditions are met, the process of adjustment to a new long-run equilibrium is complete.

The Process of Adjustment to a New Long-Run Equilibrium in a Perfectly