In long run equilibrium,a perfectly competitive firm:

Question

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In long run equilibrium, a perfectly competitive firm earns zero economic profits, as any positive profits would attract more firms into the industry, resulting in increased competition and reduced profits. Similarly, negative profits would cause firms to exit the industry, reducing competition and increasing profits. Therefore, in the long run, the price in the market settles at the level where the marginal cost equals the marginal revenue, resulting in a profit of zero for the perfectly competitive firm.

In Long Run Equilibrium,a Perfectly Competitive Firm