Explain why the statement below is true. Please provide as much detail as you can. Clearly state all assumptions
you need to provide your argument.
"In a perfectly competitive market, at every point of the market sup- ply curve, every individual producer optimally decides whether to tem- porarily shut down or not and chooses a quantity that maximizes its profit given the available technology. Ironically, the profit of every individual producer in the market is zero in the long run."
The statement is true because the firms in a perfect competition have some power to decide the time they... View the full answer