Under which market condition does the firm make only normal profit in the long run?
Monopolistic
The correct answer is option 3. In a monopolistic competition market, firms typically make only normal profit in the long run due to free entry and exit. This competition leads to firms’ economic profits being eliminated over time, and they end up earning normal profits. In monopoly and oligopoly, firms can often make supernormal profits in the long run due to barriers to entry and limited competition.
Similar Questions
Under the oligopoly market, according to __________, each producer can always lower the price until the price becomes equal to the cost of production.
Because of price rigidity, firms under oligopoly face a ____ demand curve.
______ may be defined as a market situation in which market price is largely determined by the forces of total demand and total supply in the market.
Under ____ the cross elasticity of demand between the product of the firm and that of other commodity in the market is zero.
In a competitive market, _______ is the price maker.
Important Questions from Markets
Under the oligopoly market, according to __________, each producer can always lower the price until the price becomes equal to the cost of production.
Because of price rigidity, firms under oligopoly face a ____ demand curve.
______ may be defined as a market situation in which market price is largely determined by the forces of total demand and total supply in the market.
Under ____ the cross elasticity of demand between the product of the firm and that of other commodity in the market is zero.
State one limitation of the operation of a supermarket.
