Pure Competition: Profit Maximizing in Long Run

Created by tylerknox123 

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Long-run competitive equilibrium:

is realized only in constant-cost industries.

We would expect an industry to expand if firms in that industry are:

Earning economic profits.

When a purely competitive firm is in long-run equilibrium:

Price equals marginal cost.

A purely competitive firm is precluded from making economic profit in the long run because:

Of unimpeded entry to the industry.

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