In the short run, what would indicate that a perfectly competitive firm is producing an output for which it is receiving a normal profit?

Price = Average Cost

Explanation:

I'm unsure if this question has options but this is the most probable reasons a firm in a Perfectly Competitive market would be receiving a normal profit in the Short run.

Normal Profit means that the company is making an Economic Profit of $0. For this to happen, the firm must need to be making the same.amount as it is spending on the goods that it is producing.

The amount it is spending is the Average Cost. When Price equals this Average Cost, the company is at Break-Even Point and so is making a $0 Economic profit which means it is only making Normal Profit.

For a company to make Economic Profit, the Price needs to be equal to the Marginal Cost.

answerbland allison silver purchase act);

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.