If perfectly competitive lawn care firms are making an economic profit,then

Question

Quizplus · Accepted Answer

In a perfectly competitive market, economic profits cannot persist in the long run as new firms will be attracted to enter the industry. This increased competition will drive down prices and reduce economic profits to zero, resulting in a situation of normal profit equilibrium. Therefore, the correct answer is that new firms will enter the industry.

If Perfectly Competitive Lawn Care Firms Are Making an Economic