Which of the following statements accurately explains why profits for firms in a perfectly competitive industry tend to vanish in the long run? Group of answer choices The demand for products falls over time, so firms are unable to generate revenue. Firms that experience losses try to increase supply to cover their costs, leading to zero profits. Prices drop when other perfectly competitive firms see an opportunity to earn profits and enter the market.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Which of the following statements accurately explains why profits for firms in a perfectly competitive industry tend to vanish in the long run?
Group of answer choices
The demand for products falls over time, so firms are unable to generate revenue.
Firms that experience losses try to increase supply to cover their costs, leading to zero profits.
Prices drop when other perfectly competitive firms see an opportunity to earn profits and enter the market.
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