Under Perfect Competition market condition, firms make normal profits in the long run.

Perfect competition is a market structure where there are many buyers and sellers, and no single buyer or seller has the power to influence the market price. In such a market, firms are price-takers, meaning they have to accept the market price set by the forces of demand and supply.

In the long run, firms in a perfectly competitive market can enter or exit the market freely. This means that if firms are making abnormal profits (profits above normal), new firms will be attracted to enter the market to take advantage of these profits. As a result, the supply in the market will increase, shifting the supply curve to the right. This increased competition will eventually drive down prices and reduce profits.

On the other hand, if firms are making losses or earning below-normal profits, some firms will exit the market to avoid further losses. This reduction in the number of firms will decrease the supply in the market, shifting the supply curve to the left. The reduced competition will eventually drive up prices and increase profits.

Ultimately, in the long run, the forces of entry and exit of firms will continue until firms in a perfectly competitive market are making only normal profits. Normal profit is the minimum level of profit necessary to keep a firm in operation. It is the opportunity cost of the resources used by the firm, including the cost of capital.

In a perfectly competitive market, firms cannot earn above-normal profits in the long run because new firms will enter and increase supply, driving down prices. Similarly, firms cannot sustain losses in the long run because some firms will exit, reducing supply and driving up prices. Thus, firms in a perfectly competitive market make normal profits in the long run.

In conclusion, under perfect competition market condition, firms make normal profits in the long run due to the presence of free entry and exit of firms, which ensures that profits are driven to a level where they are just enough to cover the opportunity cost of resources.