In the short run, perfectly competitive firms can

Question

Quizplus · Accepted Answer

In the short run, perfectly competitive firms can make an economic profit, take a loss, or break even, depending on various factors such as market demand, input prices, and technology. Therefore, all of the above options are correct. However, in the long run, competitive firms can only earn a normal profit, which is just enough to cover all their opportunity costs, including a return to their owners' capital.

In the Short Run, Perfectly Competitive Firms Can