[amp_mcq option1=”Normal profit” option2=”Supernormal profit” option3=”Production” option4=”Costs” correct=”option2″]<\/p>\n
In perfect competition, in the long-run, there will be no supernormal profit. This is because, in perfect competition, there are a large number of firms, all producing identical products. This means that firms have no market power and must accept the market price. In addition, firms can enter and exit the market freely, which means that profits will be driven to zero in the long-run.<\/p>\n
Normal profit is the minimum profit that a firm must earn in order to stay in business. It is equal to the opportunity cost of the firm’s resources, such as the cost of capital and the cost of labor. If a firm does not earn normal profit, it will eventually go out of business.<\/p>\n
Costs are the expenses that a firm incurs in order to produce its goods or services. They can be divided into fixed costs, which do not change with the level of output, and variable costs, which do change with the level of output. In the long-run, all costs are variable, as firms can adjust their production levels to whatever level is necessary to meet demand.<\/p>\n
Production is the process of converting inputs into outputs. In perfect competition, firms will produce at the level where marginal cost equals marginal revenue. This is the point at which the firm is maximizing its profits.<\/p>\n
In conclusion, the correct answer to the question “In perfect competition, in the long-run, there will be no” is A. Supernormal profit.<\/p>\n","protected":false},"excerpt":{"rendered":"
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