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Which of These Types of Firms Can Earn a Positive

Question 395

Multiple Choice

Which of these types of firms can earn a positive economic profit in the long run?


A) monopolies, but not competitive firms or monopolistically competitive firms
B) monopolies and monopolistically competitive firms, but not competitive firms
C) monopolies, monopolistically competitive firms, and competitive firms
D) No firms earn positive economic profit in the long run. Entry will reduce all firms' economic profit to zero in the long run.

Correct Answer:

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