Which of the following is true of long-run equilibrium under perfect competition?

Question

Quizplus · Accepted Answer

In long-run equilibrium under perfect competition, there is no incentive for firms to enter or exit the industry. This is because all firms in the industry earn only normal profit (zero economic profit) in the long run. Any new entrant will also earn only normal profit, and any existing firm that incurs losses will eventually exit the industry. This results in a stable number of firms, and there is no incentive for entry or exit.

Which of the Following Is True of Long-Run Equilibrium Under