Perfect Competition (Part 4): Short-Run Profit to Long Run Breakeven

If firms are making profits in the short-run, in the long run new firms will enter the market and drive prices down. In the long-run, all economic profits will be squeezed out of perfectly competitive markets. The lack of barriers to entry allow new firms to enter. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.

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I like that you included the "wrong" conclusion that student come and why.