Over the long run, a purely competitive seller will:
A) sustain a loss.
B) earn a normal profit.
C) earn an economic profit.
D) either sustain a loss, earn a normal profit, or earn an economic profit.

Question

Quizplus · Accepted Answer

In the long run, a purely competitive seller will adjust production and scale to ensure they are operating efficiently, leading to the earning of a normal profit. Economic profits or losses are eliminated as firms enter or exit the market, respectively, until only normal profits are made.

Over the Long Run, a Purely Competitive Seller Will