What can be achieved in the equilibrium state of a firm in the short-run under perfect competition ?
A firm in short-run competitive equilibrium may earn supernormal profit, normal profit or incur a minimized loss. The outcome depends on the market price relative to its…
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What can be achieved in the equilibrium state of a firm in the short-run under perfect competition ?
Answer and explanation
Correct answer D
A firm in short-run competitive equilibrium may earn supernormal profit, normal profit or incur a minimized loss. The outcome depends on the market price relative to its average costs at the profit-maximizing output.
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Madhya Pradesh SET (MP SET)