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Commerce · Q370

Economics

Graduate and Post Graduate · Commerce · question 370

Q370

In perfect competition, in the long run, there will be

A.
Normal profits
Answer
B.
Super normal profits
C.
Less production
D.
Cost will be falling

Answer: Option A

Solution

Answer: Option A
Solution:
In perfect competition, in the long run, there will be Normal profits. Perfect Competition Long Run equilibrium results in all firms receiving normal profits or zero economic profits.