If perfect competitors are making profits in the short run,then in the long run there will be _____ firms in the industry and market price will ____.

Question

Quizplus · Accepted Answer

In the long run, if firms in a perfectly competitive market are making profits, new firms will enter the market, increasing competition. This leads to a decrease in market prices as firms compete for customers, and the number of firms in the industry will increase.

If Perfect Competitors Are Making Profits in the Short Run,then