Long-run equilibrium refers to a state in which all firms in an industry are earning zero economic profits. In this situation, there is no incentive for firms to enter or exit the market.
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Short-run Equilibrium: Short-run equilibrium refers to the temporary state where some firms may be earning positive or negative economic profits due to fixed factors of production.
Market Structure: Market structure describes how competitive an industry is based on factors like number of sellers, product differentiation, and barriers to entry.
Perfect Competition: Perfect competition is a market structure characterized by many buyers and sellers, identical products, easy entry/exit, and no individual firm has control over prices.