In Chapter 8, we begin our examination of the various types of industry structures in which modern firms operate. Since no firm can operate in a vacuum instead having to typically face competitors, it's important for us to look at the conditions by which market structure impacts firms' conduct and performance. In the first structure we'll be studying, perfect competition, the competitive environment is such that nns' being able to achieve economic prot only encourages new entrants (on the supplyside), and at times, rms find it necessary to shut down. In the short run. we see that it's possible for rms in these industries to earn not only a so-called "normal" prot essentially an accounting prot but to also earn economic prot at times (prot which takes into account relevant opportunity costs). However, the theory is that no firm earns economic prot in the long run. So why would anyone want to own a rm that didn't earn economic prot in the long run? On the other side of the ledger, what are the implications for society in terms of efciency: are zero economic prots good for society