Asked by Coral Petersen on Jul 28, 2024
Verified
When the process of entry and exit has ended in a competitive market, are firms' profits positive, negative, or zero?
Process of Entry
refers to the steps or actions that need to be taken for a new competitor to enter into an existing market.
- Analyze the prerequisites for achieving a long-run equilibrium in competitive markets and examine the adaptation process after demand shifts.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
At the end of the entry/exit process, firms' profits are zero.
Learning Objectives
- Analyze the prerequisites for achieving a long-run equilibrium in competitive markets and examine the adaptation process after demand shifts.
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