Multiple Choice
Which one of the following is true for the marginal firm under perfect competition?
A) Whether it earns normal or supernormal profits in the SR and LR will depend on the conditions in that particular industry.
B) It can earn supernormal profits in both the SR and LR.
C) It can earn supernormal profits in the LR but only normal profits in the SR.
D) It can earn only normal profits in both the SR and LR.
E) It can earn supernormal profits in the SR but only normal profits in the LR.
Correct Answer:
Verified
Correct Answer:
Verified
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