{"id":59127,"date":"2024-04-16T01:31:43","date_gmt":"2024-04-16T01:31:43","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59127"},"modified":"2024-04-16T01:31:43","modified_gmt":"2024-04-16T01:31:43","slug":"assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/","title":{"rendered":"Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a975bc32a7a9\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    (A) and (R) both are true                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    (A) is true, but (R) is false                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    (A) is false, but (R) is true                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    (A) and (R) both are false                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: (A) and (R) both are true.<\/p>\n<p>In the long run, all firms in a perfectly competitive market will earn only normal profit. This is because firms will enter the market if there are profits to be made, and will exit the market if there are losses to be made. As firms enter the market, the supply of the good will increase, which will drive down the price of the good. As the price of the good decreases, firms will experience a decrease in marginal revenue, which will cause them to decrease output. This process will continue until all firms are earning only normal profit.<\/p>\n<p>In the long run, all firms in a perfectly competitive market will incur minimum average cost. This is because firms will have had time to adjust their plant size to the level that minimizes average cost. In addition, firms will not incur any selling costs, <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> as there is no product differentiation in a perfectly competitive market.<\/p>\n<p>Therefore, both assertion (A) and reason (R) are true.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation.\" \/>\n<meta property=\"og:description\" content=\"Join Our Telegram Channel Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:31:43+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/","og_locale":"en_US","og_type":"article","og_title":"Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation.","og_description":"Join Our Telegram Channel Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:31:43+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/","url":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/","name":"Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation.","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T01:31:43+00:00","dateModified":"2024-04-16T01:31:43+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-in-long-run-under-perfect-competition-all-firms-invariably-get-only-normal-profit-reason-r-all-firms-incur-minimum-average-cost-and-incur-no-selling-cost-due-to-absence-of-product-di\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"Assertion (A) In long run under perfect competition, all firms invariably get only normal profit. Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation."}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59127"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=59127"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59127\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=59127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=59127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=59127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}