Why would you expect one firm to make super normal profit while another makes losses while they operate under conditions of perfect competition?

Why would you expect one firm to make super normal profit while another makes losses while they operate under conditions of perfect competition?

In a perfectly competitive market, firms are price takers which mean that they have no bearing on the market price. The one making supernormal profit could be due to

  • efficiency and old in business hence could be operating at optimal point where it incurs low cost of production
  • expansion of its business on large scale hence enjoying economies of scale

The  making losses could be due to

  • inefficiency and being young in business and incurs high costs of production.
  • Over expansion hence leading to diseconomies of scale
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