Find Online Tutors for Homework Help

Looking for help with some questions looking for accuracy please 54 Most people would prefer to drive a

Question

Firms in perfectly competitive industries are unable to control the prices of the products they sell and are unable to earn a profit in the long run. Which of the following is one reason for this?

  1. Firms in these industries sell identical products.

b. Owners of perfectly competitive firms realize that their short-run profits are temporary. Therefore, they either sell their businesses or develop other products that will earn short-run profits.