Answer to Question #70280 in Other Economics for mo
Here cost is measured in the economic sense as opportunity cost. In perfect competition, they must always equal zero in the long run.
Suppose there are 2 industries in the economy, and that firms in Industry A are earning economic profits. Firms in Industry A are earning a return greater than the return available in Industry B. That means that firms in Industry B are earning less than they could in Industry A. Firms in Industry B are experiencing economic losses.
With easy entry and exit, some firms in Industry B will leave it and enter Industry A to earn the greater profits available there. As they do so, the supply curve in Industry B shifts to the left, increasing prices and profits there. As former Industry B firms enter Industry A, the supply curve in Industry A shifts to the right, lowering profits in A.
The process of firms leaving Industry B and entering A will continue until firms in both industries are earning zero economic profit. That suggests an important long-run result: a perfectly competitive firm will earn only a normal profit in the long run .
 Economics Principles (v. 2.0). https://2012books.lardbucket.org/books/economics-principles-v2.0/s12-03-perfect-competition-in-the-lon.html
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