Question

Explain freedom of entry or exit for firm in the long run of a perfectly competition of market

Answer 1

In economics, free entry is a condition in which firms can freely enter the market for an economic good by establishing production and beginning to sell the product. In most markets this condition is present only in the long run. ... However, exiting a market may involve abandonment costs.

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Answer 2

There is a freedom of entry and exit  of the firms in perfectly competitive market because there are large no. of firms in the maret so there will be no change in the market supply if one or two firms will exit the market and also there will be no affect if one or two firms will enter in the market because the proportion of market share of these firms is very small