Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms

(A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market.

(B) Some new firms will enter the market

(C) At the prevailing market price, each firm is earning supernormal profit.

(D) Demand remains unchanged but the market supply curve shifts rightward

In a particular country, there was a severe heatwave. Arrange the following in the sequence of order in context of the market of ice-creams.

(A) Rise in the price of ice cream.

(B) Supply will remain the same.

(C) Competition among the buyers of ice cream inceaseees.

(D) The demand for ice cream increases.

Choose the correct answer from the options given below:

Choose the correct options from the following in respect of Break-even point(BEP) of a firm-

(A) BEP is a point of minimum AVC where the SMC curve cuts the AVC curve.

(B) BEP is a point on the supply curve at which a firm earns only normal profit.

(C) BEP is possible both in long run and short run.

(D) BEP is the point of minimum average cost at which the supply curve cuts the LRAC curve.

Choose the correct answer from the options given below:

Which of the following condition must be satisfied for profit maximization under perfect competition for the Short Run (SR) and for the Long Run (LR) respectively?

Where P = Price, AVC = Average variable cost, AFC = Average fixed cost, AC = Average cost.

Which of the following is not a feature of perfect competition?

Which of the following condition is satisfied for a firm to maximise it's profit in the short run under perfect competition?

Where, P = Price, AC = Average cost, MC = Marginal Cost.

Under Perfect Competition, Large number of buyers and sellers implies: