CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A perfectly competitive firm can earn ___________ in the short run.

A
normal profit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
super-normal profit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
incur losses
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
all of the above.
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D all of the above.
Perfect competition is a type of market where there are huge number of buyers and sellers who deals in the same type of product due to which no individual unit is able to influence the price of the product and the seller have to quote the price that prevails in the market.

Under perfect competition the firms can either earn abnormal profit or loss in the short run.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Market Failures!
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon