Question

Firm under perfect competition in the short run can earn only _____________.

• A. abnormal profit
• B. normal profit
• C. loss
• D. any of the above

Answer 1

The correct option is D any 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.