Individual farmers behave like perfect competitors but are still able to earn economic profits in the long run.

Question

Quizplus · Accepted Answer

If individual farmers are able to earn economic profits in the long run, it means that there are barriers to entry in the market and the farmers have some degree of market power. In a perfectly competitive market, there are no barriers to entry and no market power for individual firms, leading to zero economic profits in the long run. Therefore, this statement is false.

Individual Farmers Behave Like Perfect Competitors but Are Still Able