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Tems11 [23]
2 years ago
12

In long-run equilibrium, the perfectly competitive firm earns __________ economic profits.

SAT
1 answer:
DochEvi [55]2 years ago
3 0

In perfectly competitive markets, firms in the market in the long-run, will earn zero economic profits.

<h3>What economic profits are earned in a perfectly competitive market?</h3>

In the short-run, there is a chance to earn a positive economic profit in a perfectly competitive market but this would then attract other companies into the market to make profits as well.

This then leads to the profits disappearing thanks to increased supply and lower prices. Companies would then leave and enter to either take advantage of profits or stop losses thereby keeping economic profits at zero in the long run.

Find out more on perfectly competitive markets at brainly.com/question/15712381

#SPJ1

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