Choose the correct option(s) with respect to free entry and exit assumption of a perfectly competitive market. (A) At equilibrium, no firm earns supernormal profit. (B) As new firms enter the market, the supply curve shifts leftward. (C) Equilibrium price will be equal to the minimum average cost. (D) At equilibrium, no firm incurs losses by remaining in production. Choose the correct answer from the options given below:

Question

Option 1: (A), (B) and (D) only

Option 2: (A), (C) and (D) only

Option 3: (A), (B), (C) and (D)

Option 4: (B), (C) and (D) only

AfterBoards · Accepted Answer

The answer is '(A), (C) and (D) only'. View full solution:

CUET Economics 2026 20th May Shift 1 PYQs

Keyboard Shortcuts