Question

explain how a firm reaches long run equilibrium in the perfect competition market​

Answer 1

Answer:

Equilibrium is perfect competition

Explanation:

In short run,equilibrium will affect by demand.

In long run both demand and supply of product will affect the equilibrium in perfect competition. A firm will receive only normal profit in long run at the equilibrium point.

Answer 2

Answer:

In a perfectly competitive market in long-run equilibrium, an increase in demand creates economic profit in the short run and induces entry in the long run; a reduction in demand creates economic losses (negative economic profits) in the short run and forces some firms to exit the industry in the long run.