If a perfectly competitive firm is experiencing economic profits in the short run, which of the following is the most likely consequence in the long run?

When a perfectly competitive firm is making economic profits in the short run, it attracts other firms to enter the market. This happens because new firms see the opportunity to make money and want to join in. As more firms enter, the supply of the product increases, which usually leads to a decrease in the market price. Eventually, the price will fall to the point where firms are no longer making economic profits, and they just cover their costs. For example, if a bakery is making a lot of money selling cupcakes, other bakers might start opening their own cupcake shops, leading to more competition and lower prices over time.