A perfectly competitive industry adjusts to long-run equilibrium through the entry and exit of firms into and out of the industry and through each firm adjusting plant size and production to maximize economic profit in the long-run. The end result of this long-run adjustment is a multi-faceted equilibrium condition that price is equal to marginal cost and average cost (both short run and long run). The other is the entry of firms into the industry or exit of firms out of the industry, to eliminate economic profit or economic loss.
One is the adjustment of each perfectly competitive firm to the appropriate factory size that maximizes long-run profit. PERFECT COMPETITION, LONG-RUN ADJUSTMENT: A perfectly competitive industry undertakes a two-part adjustment to equilibrium in the long run. The AEA, as acronymically inclined economists call it, also sponsors an annual conference where professional economists present scholarly papers on their latest scholarly research. economic journal and the Journal of Economic Literature, arguably THE number one index of economic journal publications. Founded in 1885, this premier top-of-the-economic-association-list publishes the prestigious American Economic Review, arguably THE number one scholarly U.S. AmosWEB means Economics with a Touch of Whimsy!ĪMERICAN ECONOMIC ASSOCIATION: An organization of over 25,000 professional economists.
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