In the short run, a purely competitive firm will earn a normal profit when

A) P = AVC.
B) P > MC.
C) that firm's MR = market equilibrium price.
D) P = ATC.

Normal Profit

Normal profit is the minimum level of earnings necessary for a company to remain competitive in the market, covering its opportunity costs.

Market Equilibrium

A state where the supply of goods matches demand, leading to a stable price level for those goods.

Average Total Cost

The sum of all production expenses (both fixed and variable) divided by the overall output.