Firms keep entering as long as there is economic

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firms keep entering as long as there is economic profit Why Can’t perfectly  competitive firms make an economic profit in the LR? LR Equilibrium in Competitive Markets P= Mc= Ac Long run equilibrium o Individual firm is maximizing profits – most profits the firm can make  Bill would love it if he could go back to 10 dollars, but he is price taker  and since there is a new firm – he can take 5 Break even – zero economic profit o Market is in equilibrium  o Market is at rest – firm and market are doing exactly as they should Economic Profit – Zero Economic Profit They are making normal economic profit Extranormal proit – when making more than 5 dollars o Maximizing profits – firm is producing but making a loss – what does it  look like? Greater returns elsewhere and price goes back up Say something hhappens to market for corn  People want more
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Corn becomes popular What would happen to farmer bill?
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