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if there were 20 firms in this market, the short-run equilibrium price of steel would be $ per ton. at that price, firms in this industry would . therefore, in the long run, firms would the steel market. because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be $ per ton. from the graph, you can see that this means there will be firms operating in the steel industry in long-run equilibrium.

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The fact that firms in this industry are earning positive profits will encourage entry into the market. This entry by new firms will drive the market price down until firms earn zero profit.

At this point, firms not in the industry will have no incentive to enter, and firms in the industry will have no incentive to exit, so the industry will be in long-run equilibrium.

Competitive corporations whose general prices are covered through their general sales grow to earn financial income. Accounting income, even though, manner that a corporation is jogging at a loss.

Zero monetary is a time period economists use whilst an agency's general fees are identical to its total revenues, which means its financial profit is identical to zero. Typically, whilst an organization is aggressive and has sales that cowl its costs, it is able to file a zero monetary income.

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