Which one of the following is true for a firm under perfect competition when all firms face identical costs? O t can earn supernormal profits in the short run but only normal profits in the long run. O Whether it earns normal or supernormal profits in both the short and the long run will depend on the conditions in that particular industry. O I t can earn supernormal profits in the long run but only normal profits in the short run. O I t can earn only normal profits in both the short and the long run. O t can earn supernormal profits in both the short and the long run.
Which one of the following is true for a firm under perfect competition when all firms face identical costs? O t can earn supernormal profits in the short run but only normal profits in the long run. O Whether it earns normal or supernormal profits in both the short and the long run will depend on the conditions in that particular industry. O I t can earn supernormal profits in the long run but only normal profits in the short run. O I t can earn only normal profits in both the short and the long run. O t can earn supernormal profits in both the short and the long run.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 6E
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