{"id":6443,"date":"2018-02-05T15:36:13","date_gmt":"2018-02-05T15:36:13","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/outcome-entry-and-exit-decisions\/"},"modified":"2024-04-25T21:52:51","modified_gmt":"2024-04-25T21:52:51","slug":"introduction-to-the-long-run-and-efficiency-in-perfectly-competitive-markets","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/introduction-to-the-long-run-and-efficiency-in-perfectly-competitive-markets\/","title":{"raw":"Introduction to the Long Run and Efficiency in Perfectly Competitive Markets","rendered":"Introduction to the Long Run and Efficiency in Perfectly Competitive Markets"},"content":{"raw":"<h2>What you'll learn to do: describe how perfectly competitive markets adjust to long run equilibrium<\/h2>\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/01224410\/singapore-2040221_1920.jpg\"><img class=\"wp-image-8032 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/01224410\/singapore-2040221_1920-1024x768.jpg\" alt=\"Image of a downtown city center with many modern skyscraper buildings. There is a blue sky and clouds behind the buildings.\" width=\"482\" height=\"362\" \/><\/a>\r\n\r\nPerfectly competitive markets look different in the long run than they do in the short run. In the long run, all inputs are variable, and firms may enter or exit the industry. In this section, we will explore the process by which firms in perfectly competitive markets adjust to long-run equilibrium. In addition, we will revisit the concept of allocative efficiency and discover how perfectly competitive firms, unlike firms in other market structures, are allocatively efficient.","rendered":"<h2>What you&#8217;ll learn to do: describe how perfectly competitive markets adjust to long run equilibrium<\/h2>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/01224410\/singapore-2040221_1920.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8032 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/01224410\/singapore-2040221_1920-1024x768.jpg\" alt=\"Image of a downtown city center with many modern skyscraper buildings. There is a blue sky and clouds behind the buildings.\" width=\"482\" height=\"362\" \/><\/a><\/p>\n<p>Perfectly competitive markets look different in the long run than they do in the short run. In the long run, all inputs are variable, and firms may enter or exit the industry. In this section, we will explore the process by which firms in perfectly competitive markets adjust to long-run equilibrium. In addition, we will revisit the concept of allocative efficiency and discover how perfectly competitive firms, unlike firms in other market structures, are allocatively efficient.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-6443\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li><strong>Authored by<\/strong>: Steven Greenlaw and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>cityscape . <strong>Authored by<\/strong>: cegoh. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/en\/singapore-singapore-river-skyline-2040221\/\">https:\/\/pixabay.com\/en\/singapore-singapore-river-skyline-2040221\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":29,"menu_order":9,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"\",\"author\":\"Steven Greenlaw and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"cityscape \",\"author\":\"cegoh\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/en\/singapore-singapore-river-skyline-2040221\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"caeca6f6-9b83-4ace-bb43-9518b279074f","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-6443","chapter","type-chapter","status-publish","hentry"],"part":6421,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/users\/29"}],"version-history":[{"count":15,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6443\/revisions"}],"predecessor-version":[{"id":10183,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6443\/revisions\/10183"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/parts\/6421"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6443\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/media?parent=6443"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=6443"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/contributor?post=6443"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/license?post=6443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}