Q258
Under ______ market condition, firms make normal profits in the long run.
A.
Perfect competition
AnswerB.
Monopoly
C.
Oligopoly
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
Under Perfect competition market condition, firms make normal profits in the long run. In sum, in the long-run, companies that are engaged in a perfectly competitive market earn zero economic profits.