Perfectly competitive firms are price takers.
There are many firms in a perfectly competitive market.
There are no barriers to entry or exit in perfectly competitive industries.
Because there are no barriers to entry or exit in perfectly competitive markets. When firms are
making positive economic profit, entry will occur and firms' profit level will decrease. Similarly,
when firms are making negative economic profit, exit will occur and remaining firms' profit level
will increase. Therefore, perfectly competitive firms will always make negative economic profit
in the long run.
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