Q. In perfect competition, a company earns an abnormal profit when average revenue exceeds the:
Answer: Average cost
Notes: In perfect competition, a company earns an abnormal profit when average revenue exceeds the average cost. A perfectly competitive market has been defined as one where an individual firm is unable to influence the price at which the product is sold in the market . Thus, a company earns an abnormal profit when average revenue exceeds the average cost.

This question is part of 40000+ General Studies MCQ Series Course on GKToday Android app. Question Number: 260 in 1. Important Concepts in Micro & Macroeconomics in above course in App.