Which of the following is not a factor that automatically pushes firms in pure competition to earn only normal profits in the long run?
A)entry of new firms
B)exit of some firms
C)changes in the firms' plant size
D)changes in the market demand

Question

Quizplus · Accepted Answer

In pure competition, changes in market demand can lead to short-term profits or losses, but they do not automatically push firms to earn only normal profits in the long run. Instead, entry and exit of firms and adjustments in plant size help ensure firms earn normal profits.

Which of the Following Is Not a Factor That Automatically