Answer to Question #188354 in Microeconomics for Shamaine Mathebula

Question

Which one of the following statements is incorrect?

Under perfect competition:

A. Firms may earn economic profit in the long run

B. Firms may earn economic profits in the short run

C. Firms may earn normal profit in the short run

D. Firms may suffer economic losses in the short run

E. Firms may earn normal profit only in the long run

Answer 1

A. Firms may earn economic profit in the long run