Long-Run Equilibrium Of An Industry under perfect competition.

In this video I will explain long-run equilibrium of an Industry under perfect competition. A large number of firms producing same product constitute an Industry under perfect competition. The industry is in equilibrium position when every firm working in its earns normal profit. Because this situation neither provides any incentive for new entry nor the existing firm desires to leave it. In Short-run some firms may be earning abnormal profit and some others may be facing losses. But in the long-run the situation may become stable. Long-run equilibrium price is determined by the aggregate demand & aggregate supply forces of the industry results: P= AR=MR= LAC=LMC