When a perfect competitive firm earns __________ its average revenues are more than its average total cost.

CA Foundation · Business Economics · PYQS · January 2025
When a perfect competitive firm earns __________ its average revenues are more than its average total cost.
(A) A. supernormal profits
(B) B. normal profits
(C) C. normal profits and supernormal profits
(D) D. Losses

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. supernormal profits

Topics: Theory of Production and Cost

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