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What are some specific ways that real-world markets tend to differ from the assumptions or characteristics...

What are some specific ways that real-world markets tend to differ from the assumptions or characteristics of the perfectly competitive model? Evaluate the conclusion that perfect competition leads to a long-run equilibrium in which economic profit is equal to zero. Why do economists believe that firms earning "zero economic profit" are able to stay in business?

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The real world market differ from the competitive markets as the consumers do not have the perfect knowledge about the market unlike said in assumption. The products are different in some or the other sense. The consumers bargain and the sellers try to differentiate in order to earn higher revenues. This is different from the assumptions studied. There is the exisitance of the positive profits in real world.

The competitive markets have free entry and exit. As a result as soon as positive profits are seen ,new firms enter driving down the profits of market. Hence only the normal profits are earned here.

But the firms are able to cover up their accounting cost as well as their opportunity pr implicit cost in this market and do not face economic losses. That is why as per the economists , the firm exists earning zero economic profits in competitive markets

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