Identify the correct sequence due to which firms under perfect competition earn normal profits in the long run. (A) The firms are earning less than…
CUET UG 2025 — Economics Micro
Identify the correct sequence due to which firms under perfect competition earn normal profits in the long run.
(A) The firms are earning less than normal profit at the prevailing price.
(B) The profits of each firm will increase to the level of normal profit.
(C) No more firm will want to leave, since they will be earning normal profit here.
(D) Some firms will exit, which will lead to an increase in price.
Choose the correct answer from the options given below:
Held on 16 May 2025 · Verified 13 Jul 2026.
Options
- A
(A), (B), (C), (D)
- B
(A), (D), (C), (B)
- C
(A), (D), (B), (C)
- D
(C), (B), (D), (A)
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