Assertion (S): In the short run under perfect competition, given the market demand and market supply, the industry is in equilibrium at that price which clears the market.
Reason (R): In the long run, all the firms in the industry earn normal profit.
1
Both (S) and (R) are true and (R) is the correct explanation of (S).
2
Both (S) and (R) are true but (R) is not the correct explanation of (S).
3
(S) is true, but (R) is false.
4
(S) is false, but (R) is true.