Economy, asked by nonstpdhamaka2427, 10 months ago

Explain the implications of freedom of entry and exist of firms under perfect competition?

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Answered by Anonymous
4

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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