Question

Consider a perfectly competitive industry initially in the long-run equilibrium. If all firms in the industry are required to adopt costly antipollution devices, the long-run effects would be that the firms would be earning ______________ and the industry will be producing ______________ amounts of output.

Answer 1

Answer:

zero economic profits; lesser or smaller

Explanation:

Long-run is basically comes in form when the cost which is been spent by the industry remains equal to the money which has been earned by the industry.

If every firm in the industry will be adopt costly antipollution devices, then the firm will be earn zero economic profits and the industries will able to produce in lesser or smaller quantity of outcome.