In short-run perfectly competitive equilibrium, which of the following is always true?
A) Profit equals zero.
B) Profit can be negative, zero, or positive.
C) Profit can be zero or positive, but not negative.
D) Profit is positive, otherwise firms would not produce.

Question

Quizplus · Accepted Answer

In the short-run, firms in a perfectly competitive market can experience negative, zero, or positive profits depending on their costs and the market price.

In Short-Run Perfectly Competitive Equilibrium, Which of the Following Is