In a perfectly competitive industry, in the long run

Name: In a perfectly competitive industry, in the long run
Brand: Quizplus
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Question

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In the long run, firms in a perfectly competitive industry earn zero economic profit. This is because there are no barriers to entry, meaning new firms can enter the industry and existing firms can exit, leading to an adjustment in supply that drives down prices and profits. As such, firms earn only enough revenue to cover their costs, resulting in zero economic profit.

In a Perfectly Competitive Industry, in the Long Run