Perfect Competition Long-Run (2 of 2)- Old Version

The video tutorial explains economic concepts in the context of perfect competition. It covers the short-run and long-run dynamics, focusing on how firms enter the market to make profits, leading to shifts in the supply curve and changes in market prices. The tutorial concludes with the concept of long-run equilibrium, where no economic profit is made, and firms have no incentive to enter or exit the market.

What is the significance of long-run equilibrium in a competitive market?

Describe the conditions under which firms will stay in the market.