Firms cannot enter an industry in which positive profits are being earned in
A) the short run.
B) the long run.
C) the short run and in the long run.
D) As long as positive profits are being earned, firms can enter the industry in both the short run and the long run.

Question

Quizplus · Accepted Answer

In the short run, firms cannot enter an industry due to fixed factors and constraints, but in the long run, they can enter if positive profits are being earned.

Firms Cannot Enter an Industry in Which Positive Profits Are