Which of the following market structures will have only normal profit in the long run?
A)Monopoly.
B)Duopoly.
C)Monopolistic competition.
D)Oligopoly.

Question

Quizplus · Accepted Answer

In monopolistic competition, there are many firms producing differentiated products, so there is some degree of competition in the market. This means that firms cannot charge high prices without losing customers to their competitors. Therefore, in the long run, firms in monopolistic competition will only earn normal profits, as any excess profits will be competed away by the other firms in the market.

Which of the Following Market Structures Will Have Only Normal