In a long-run equilibrium,it is possible that some firms in a competitive market are making a positive economic profit.

Question

Quizplus · Accepted Answer

In a competitive market, economic profits attract new firms which increase supply and decrease prices, eventually driving profits down to zero in the long-run. However, if there are barriers to entry or differentiated products, some firms may be able to maintain a positive economic profit in the long-run equilibrium.

In a Long-Run Equilibrium,it Is Possible That Some Firms in a Competitive