earning profits, new firms will the industry. As a
result, the industry supply curve will shift to the
price will.
b. If existing firms in a perfectly competitive industry are
incurring losses, some firms will eventually the
industry. As a result, the industry supply curve will shift
to the and price will.
c. In the long run, all firms in a perfectly competitive
industry (assuming they have the same cost curves) will
be earning profits and will be producing at the
point of its short-run curve and the point of
their long-run curve.
