Under ______ market condition, firms make normal profits in the long run.

QUESTION
Q3) Under ______ market condition, firms make normal profits in the long run.

Correct

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Solution:
The correct answer is (a) Perfect Competition.

Under perfect competition, firms make normal profits in the long run.
This means that the price of the product is equal to the minimum average total cost of production.
In this market structure, there are many small firms producing homogeneous products and no individual firm has the power to influence the market price.
Correct option is (a)