Completely describe the factors that drive profits to zero in perfectly competitive markets in the long run.Explain carefully utilizing the concepts on the text and that you have learned throughout this course the incentives that drive the market to a long run equilibrium.

Some things to consider as you answer this question:

Why would a firm choose to operate at a loss in the short run

When do firms decide to shut down production in the short run?

Why would any firm want to operate in a perfectly competitive market?