Business Studies, asked by Arshh8311, 1 year ago

why do firms in perfect competition earns normal profit in the long run

Answers

Answered by trinabh74
0
because if there are extra normal profits , then new firms will enter the market price will reduce and extra normal profit will be wiped out .. if are extra normal losses then existing ones will leave the market , market price will increase and extra normal losses will b wiped out
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