Economics · Market Structures
Assertion (S): In the short run under perfect competition, given the market demand and market supply, the industry is in equilibrium at that price which clears the market. Reason (R): In the long run, all the firms in the industry earn normal profit. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(S) is false, but (R) is true.
- 2(S) is true, but (R) is false.
- 3Both (S) and (R) are true but (R) is not the correct explanation of (S).✓
- 4Both (S) and (R) are true and (R) is the correct explanation of (S).
Correct answer
Both (S) and (R) are true but (R) is not the correct explanation of (S).
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