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In long-run perfect competition, firms earn only:
ANormal profit
BMonopoly profit
CWindfall profit
DSubsidy income
Answer & Solution
Correct answer: A. Normal profit
Entry of new firms removes any extra profit, leaving only the return the owner could earn elsewhere.
Related questions
Monopolistic competition produces what kind of products?Who published The Economics of Imperfect Competition in 1933?Oligopolists can earn abnormal profits in the long run mainly because of:Interdependent oligopolists are generally reluctant to:In a monopoly, the firm and the industry are:Economic profit in perfect competition attracts:Normal profit is counted as part of a firm's:A monopolist whose revenue exceeds its costs earns: