In the long run, a firm in a perfectly competitive market earns zero economic profit, so the opportunity in the short run to enjoy positive economic profits will cause existing firms to increase output and new firms to enter the market. 1st attempt See Hint the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn stay in enter exit the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn down | up to stay the same until the remaining firms earn a small negative economic profit zero economic profit positive economic 25/26 profit