What kind of a profit is earned by perfect competition in the long run?

Answer 1

In the long period, economic profit cannot be sustained. The arrival of new firms or expansion of existing firms (if returns to scale are constant) in the market causes the (horizontal) demand curve of each individual firm to shift downward, bringing down at the same time the price, the average revenue and marginal revenue curve. The final outcome is that, in the long run, the firm will make only normal profit (zero economic profit).

Answer 2

Theoretically no. The abnormal profits made by firms in the industry in the short run will attract more firms to join the industry. This will cause a rightward shift in the industry's supply curve, until all abnormal profits the original firm was making are gone are gone.

Answer 3

Super Normal profit