Economy, asked by punu43, 8 months ago

Explain the implication of free entry and free exit of a firm in the perfect competition market.

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Answers

Answered by sssrohit005p4c0ey
7

Explanation:

Explain the implication of free entry and free exit of a firm in the perfect competition market.

Answer: The implication of free entry and free exit of a firm in the perfect competition market is that in this market structure no company earn an unusual profit. Each company just earns a normal profit.

Answered by uttamraj4345
2

Answer:

There is freedom of entry and exit to firms in perfect competition. This implies that under perfect competition, in long run firms earn only normal profits so new firms does not enter or exit the market in long run. The firms in perfect competition do not earn supernormal profits or losses in long run.

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