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                                    Why firms earn normal supernormal and losses under perfect competition in short run reason | 
                            
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Answer»  Answer: In the short RUN Under perfect competition, firms can make super-normal PROFITS or losses. However, in the LONG run firms are attracted into the industry if the INCUMBENT firms are making supernormal profits. This is because there are no barriers to ENTRY and because there is perfect knowledge. follow me⚛ | 
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