What is the adjustment process that drives economy

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Industrial organization or market structure refers to the characteristics of a market or industry, such as the type(s) of product, number and size of firms, ease of entry into industry, cost of exiting, independence of action etc. One such industry is known as Pure Competition. Describe the attributes of such an industry and provide some examples.

Discussion Title: Pure/Perfect Competition

Explore why, in the long run, typical firms in perfectly competitive industries earn zero economic profit (or earn only a normal return on investment). What is the adjustment process that drives economic profits to zero? Why does this process not occur in less competitive industries? Find an example that illustrates the process.

Reference no: EM13201056

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