A perfectly competitive firm in the long run earns:
A) positive economic profits but zero normal profits.
B) positive normal profits but zero economic profits.
C) positive economic profits and positive normal profits.
D) zero economic profits and zero normal profits.

Question

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm earns zero economic profits but positive normal profits, as normal profits are considered a cost of doing business and are included in total costs.

A Perfectly Competitive Firm in the Long Run Earns