xoAmber365 xoAmber365
  • 20-03-2018
  • Business
contestada

In the long​ run, profits will equal zero in a competitive market because of

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MrsTriplet MrsTriplet
  • 29-03-2018
In the long​ run, profits will equal zero in a competitive market because of free entry and exit.

Because there is free entry in a market, the competition can come and go as they please.  This stops the ability for a company to have a monopoly because any company can come and sell the product. Companies are also able to leave a market but they may leave behind their goods without profit. 
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