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

Changes in market demand do not automatically push firms to earn only normal profits; they can lead to shifts in prices and profits, but the entry and exit of firms and adjustments in plant size are the mechanisms that drive firms to normal profits in the long run.

Which of the Following Is Not a Factor That Automatically