Which of the following is not true for long run equilibrium of a perfectly competitive industry?

CA Foundation · Business Economics · PYQS · January 2026
Which of the following is not true for long run equilibrium of a perfectly competitive industry?
(A) A. All firms in the industry are in equilibrium.
(B) B. All firms are earning super normal profits.
(C) C. The price of the product is such that quantity supplied by the industry is equal to the quantity demanded by consumers.
(D) D. Plants are used to full capacity in the long run.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. All firms are earning super normal profits.

Topics: Price Determination in Different Markets

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