In perfect competition, the demand faced by a single firm is perfectly rev: 06_26_2018 elastic, because the firm produces a differentiated product. inelastic, because the firm produces a differentiated product. elastic, because many other firms produce the same standardized product. O inelastic, because many other firms produce the same standardized product. In a perfectly competitive industry rev: 06_26_2018 O no economic profits can exist in either the short run or the long run. O economic profits may persist in the long run if consumer demand is strong and stable. economic profits may exist in the short run but not in the long run. economic profits may exist in the long run but not in the short run.