Which of the following is not a characteristic of perfectly competitive markets?

Question

Quizplus · Accepted Answer

Long-run economic profits are not a characteristic of perfectly competitive markets. In the long-run, firms in perfectly competitive markets only earn normal profits, which is just enough to cover the opportunity cost of capital and labor. If firms earn long-run economic profits, more firms will enter the market, which will increase supply and decrease prices, eliminating economic profits in the long run.

Which of the Following Is Not a Characteristic of Perfectly